The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-02-07
By J. c. baskerville
The Times-Ncws Bureau
Sir Walter Hotel

RALEIGH, Feb. T. Having
spent 80 days in trying to 'find
the money where the money is"
without finding any new money
at all, the new subcommittee OF
the joint finance committees is
now working behind closed doors
in an effort to bring out a new
revenue bill that will "find the
money where the money isl and
provide enough revenue t" n@l-
ance the budget and keep the
state government operating.
Just how long q. viii ta4:cg ~
this subcommittee to complete
this task no one knows. 4 few
believe that it NJ he able ~
bring out its new revenue bill by
the end of the week. But most
of the older AMI more experience
ed heads believe that it will re-
quire fully two weeks for the
subcommittee to prepare its new
bill. This means that instead OF
getting the revenue bill today,
as provided for in the Moore res
olution adopted the first week
the legislature was in session, the
bill is not likely to be presented
to the assembly before February
20. This would leave the assem-
bly, barely two weeks within
which to debate the revenue and
appropriations bills and enact
them before the expiration Of
the 60-day session on March a..
Very few now believe the assem-
bly, can finish all the work it has
before it before the middle Of
March, while a good many be-
lieve it will not be able to finish
before April 1.
1t is almost a foregone con-
clusion that the new revenue bill
will contain a general sales tax
on gross retail sales. Indications
are that sentiment is growing in
both houses for uch a sales tax
and that a majority have already
made up their minds to vote for
it, even though many of these
personally are opposed to such q
tax. But more and more of the
members are convinced that a
general sales tax is the only pos
Sible means of balancing the bud
get and Of providing the revenue
needed for the opration of the
state government, even with the
drastic cuts in operating costs
that are going to be made.
AS things now stand, the reVe-
nue. bill suggested by the advis- |
DRY budget commission, failed by |
at least $7,O00,00O to balance
the budget recommended, even
with the more than $3,000,000 in !
salary cuts and greatly reduced |
appropriations suggested. For
the joint finance committees have |
already refused to consider di-
verting $2,O00,OO0 from the high
way fund, to refund any of the
states bonded Indebtedness, which |
was recommended, or to increase
the taxes on corporate business
sufficiently to recapture the 81
100000 in taxes lost through the
repeal of the state Is cents
property tax. Thus at least ST.
100000 a year of new revenue
must be found in order to bal
ance the budget and retain all
the tax schedules now in the
1881 revenue act. And all of
those taxed under these sched-
ules have been pleading for re-
auctions and opposing any in
creaSes.
Consequently it has already be-
come apparent that a general
sales tax is about the only thing
that will produce the necessary
100000 in new revenue need
ed.
The big fight is expected to
develop not over the adoption of
a sales tax, but over the size of
the tax, according to present in
dications. For there are already
two well defined groups of |
thought. One of these favors
the enactment of as small sales
tax as possible in order to BRO
vide only the $7,O00,00O in newt