The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-02-18
DRAFTING new
REVENUE BILL
House Group Now Seeking
to Avoid General
Sales Tax
By J. c. BASKERVILLE
The Timcs-Ncws Burenu
Sir Walter Hotel

RALEIGH, Feb. Is. - With
sentiment against a general sales
tax on gross retail sales appar-
emily growing daily, despite what
the finance subcommittee may
decide upon, two independent
groups are now understood to be
working on revenue bills that Will
raise sufficient money to balance
the budget without re3ortlng to
general sales tax. One OF
these groups is in the house and
one in the senate.
The house group working on
new bill to balance the budget
without resort to d general sales
tax is understood to be composed
of several members of the house
finance committee who were left
off the subcommittee and Il num-
Der Of others who are bitterly
opposed to a sales tax on retail
sales. 1t is reported that Rep
resentative Harriss Newman Of
New Hanover county is one OF
the leaders in this movement,
that the bill will contain a modi-
fled luxury or selected commodi--
ties tax on place of a retail
sales tax and that Newman is
going to lead the fight for this
bill in the house.
First reports that Newman
would support luxury or select
ed commodities luxury tax were
for a time discounted, since in
1881 Newman fought both forms
Of sales tax bitterly and causti-
cially assaulted Josephus Daniels
for his support and advocacy of
the luxury sales tax as advocat-
ed bv Senator Hinsdale. 1t would
now appear, however, that New
man has gone over to the Hins-
dale-Daniels luxury sales tax
camp. As result of the appar-
emily increasi sentiment
against the general sales tax in
the house, a good many believe
that Newman is going to have 4
large following and that he may
succeed in getting a luxury tax
bill through the house. Newman
is generally acknowledged as one
Of the ablest men in the house,
being a fOrceful speaker and one
that always knows his facts be-
fore he gets up to speak. The
fact that he is chairman of the
house appropriations committee
also puts him in stronger po-
sition than he otherwise might
hold.
Just who are behind the move
in the senate to bring out a new
revenue bill, is not so definitely
known. Nor is the type of this
bill known. But the belief of
several is that Senator John
Sprunt Hill of Durham, is iden-
titled with the movement in some
way, even though he may be
staying in the background. This
bill will not contain any form of
retail sales tax and is not likely
to contain a luxury tax plan,
certainly none that would impose
a sales tax on cigarettes and
other tobacco products. 1t has
been slyly intimated by several
in position to know what is be-
ing developed that the bill may
contain a brand new income tax
feature that will touch all small
err incomes as well as the larger
ones, in addition to the present
income tax. But this has not
yet been verified.
Senator Hinsdale, of course,
is continuing to push his luxury
tax bill and intends to make
every possible effort to get it
considered, regardless of what
the finance committee does with
it. The subcommittee now work
ing on new revenue bill is un-
derstood to have already kicked
Hinsdale's luxury tax bill out
the window. Indications are that
friendly enemies of the Hinsdale
bill are persuading Hinsdale to
add so many commodities to il
that it will almost be IA combina-
ton general and luxury tax bin
rolled into one. An attempt is