The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-02-03
NAY RENRITE
Revenue Bill
Finance Committee Mem
bers Are At Odds Over
Nature OF Measure
By ]. c. BASKERVILLE
The Times News BWenc
Sir Wnlirr iinIrl

ST. Walter Hotel
RALEIGH, Feb. 3.-AI is not
we'll within the senate and mouse
finance committees and indications
are. that q good deal of fur may
fly before any kind of revenue
bill will be forthcoming. For sew
eral days rumors have been rife
that quite a number of the men,
bers of both finance committees
are in favor of scrapping the
revenue bill submitted by the bud
get commission and writing a new
bill from start to finish. .:-- -.
Indications are that the indus
trial and corporate interests of
the state are behind the move
ment to scrap the budget revenue
bill and to write a new bill with
the income. franchise income and
other taxes reduced to the levels
/ contained in, the 1929-31 revenue
act instead of those in the 1881
33 revenue act. 1t is generally
agreed that the taxes on the pow
er companies, manufacturers ami
industrialists generally were boost
ed higher by the 1881 general as
sembly than ever before. AS re-
suit, some have anticipated thai
] they would make an effort to get
these schedules reduced this time,
| in spite of the need for still more
revenue. :.
| 1t is generally agreed that If
any of the present tax schedules
! are reduced that a general sales
! tax viii be necessary to make up
the difference, For even if the
schedules suggested in the budget
revenue act should be retained,
fully S5,000,000 in additional
revenue will still be needed to
provide for the essential needs OF
the state and balance the budget.
1t is reliably understood that
both Chairman r. A. Doughton OF
/ the house finance committee and
Senator r. Grady Rankin, chair
man of the senate finance commit
tee, are in sympathy with the
movement to reduce the schedules
in the proposed revenue bill on
the industrial corporations, sucn
as the power companies, tobacco
companies, railroads and other
corporate interests. "
There is substantial bloc from
the non-industrial counties, how
ever, composed of legislators who
are determincdly' opposed to re
ducing any of the present tax
schedules on the corporations, es-
pe2iallv if a general sales tax il
! to be levied to transfer the mil.
lions that will be saved the corpc.
rations to the backs and stomachs
of the masses of the people. IRE
members of this group are hearth,
| " in accord with the suggestion
/ of the tax commission and budget
commission that the corporations
| should not even be permitted tn
/ enjoy. the saving in adj ;valoreln
/ taxes they will get as result OF
the repeal of the Is cents state
property tax, bat that they should
be made to make this saving az
through Replacement taxes. -"
Yet present indications are that
the finance committees not only
arc heading entirely away from
levying any replacement taxes,
but toward lower taxes on corpo-
rate industry all along the line. b.
In order to counterfeit this
move, the other faction is coming
more and more to the conviction
that if any taxes are to be REDUCED
they should be the taxes on tbs
farms and homes of the rank and
| fiie of the people instead of on the
! dams, power sites, factories am
other properties of corporations
They maintain that if a genera
sales tax is to be levied--and al
most everyone here now agree:
that general sales tax is inevita
| ble-thst it should provide some
relief for the smaller propert,
owners and not just. for the ''bif
boys" of big business. They are
unwilling to approve "a sales ta>
unless it will provide for a partia
transfer of, the tax burden all tn
way down the line.
This is the reason behind tht
growing sentiment for state
supported eight months schoo
term. For by transferring. the cos
of the extended term from TIT
property owners in the 1880 spe
cial tax and charter districts x
the state, pronerty owners will b.
\ relieved of fully S4,0o0,000Sa yea
| in property taxes. 1t is agreed
that a large portion of this bill
viii be taken off corporate prop