Imperial Valley press., 1933-07-24
SENATE Gets
INCOME AND
SALES TAXES
Assembly Passes Both Measures
After Much Debate And
Wrangling.
SALES LEVY IS REDUCED
Lower House Cuts 1t From
Three To Two Per Cent And
Compromise Expected.
BY THOMAS B. MALARKEY

BY THOMAS B. MALARKEY
United Press Staff Correspondent
SACRAMENTO, Cal, July "a.
Wedged between conflicting view
points of a rural-conservative SEN
ate and an urban liberal assembly
today were two vital taxation mea-
sures directly affecting every Cali
fornia home-a retail sales tax and
a personal income tax.
The assembly has passed both
measures. Their fate, for the time
being at least, lies in the hands
of the senate.
The assembly took the senate
! three per cent sales tax, cut it to
two per cent and sent it back to
the upper house. The senate was
expected to boost the rate back
up to three per cent.
If the expected inter-house dead
lock develops, the sales tax issue
will go into free conference from
which will emerge, it is freely pre-
dicted, a 21A per cent compromise
acceptable to both legislative bodies.
The lower house butted down
all major amendments-exem
and others-except lowering the
rate. First it cut the rate to 2k
per cent. Then a legislative assault
led by Assemblyman Percy West
pared it down another half per
cent.
Vote on the final passage was 81
to 81.
State board of equalization esti-
mates place the per cent sales
tax yield at $63,000,000; 2 per
cent, $80,000,000: per cent $685.
100000. The states deficit is esti-
mated between $126,00O,000 and
$128, 100000.
A sensational drive led by the
Democratic floor leader Assembly,
man F. c. Todd" Clowdsley, ended
successfully with assembly passage
of a personal income tax. The
measure is patterned after the fed
eral income tax but carries only
one-third the rate.
Clowsley admitted the income
tax would probably be killed in the
senate. But he insisted the lower
house should go on record in favor
OF a tax on the rich (the income
tax) to balance up the necessary
tax on the poor (the sales taxi.
: Legislators Weary
Final vote was AZ to 80. Opposi-
ton was led by leaders of the
Los Angeles delegation and Edgar
Levey, San Francisco former speak
er.
The Clowdsley income tax
sponsored by the California Farm
Bureau, would raise $l50OOO00
biennium.
Ordinarily the sales tax situation
would be a perfect Setup for a
prolonged deadlock. But weary and
fretful legislators working in the
heat and without pay, are anxious
to compose their differences and
go home.
In the wake of the sales and
income taxes will come a cluster of
supplementary tax bills designed to
lift the revenue yield to within
striking distance of the stagger-
ing deficit.
In this category are Beer tax
increase; medical liquor and wine
excise tax; increased inheritance
levies and boosting the motor We
hicle license fee one dollar These
four would raise around $4,000 900.
If they aren't enough, there are
any number of other revenue mea-
SureS available.
Trend of legislative opinion is
against balancing the budget up to
the last dollar. Legislators feel If
they fall short 10 or u million
lit would be a governmental econ
omy incentive.
Both assembly and senate cham-
bers will be occupied by visiting
governors and the repeal conven-
ton in the morning. Consequently
sessions will not begin until after
noon. Adjournment has been set
for Wednesday afternoon at 4
o'clock. Night sessions will prob
ably be in order to clean up loose
ends other than tax matters.