The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-02
SALES TAX IS
CONDEMNED BY
BUSINESS men
600 at Mass Meeting Voice
DenunCiation: MCNutt to
Get Resolution.
BUDGET PLAN OFFERED
Merchants and Industrial
Heads Strenuous in
Objections.

Resolution cOndemnlng the pro-
posed sales tax, adopted at a mass
meeting of nearly six hundred rep
resentatives of business and indus
try from all sections of the state.
was to be presented to Governor
Paul V. McNutt today.
In addition to adopting the reso-
luton. the group approved a pro-
posed method OF balancing the bud
get, without creating any new tax,
which was submitted to the Gov
ernor Wednesday by a committee
representing the retail merchants
of the state
1t was pointed out that the state
government faces a deficit of S3.224,-
TAB by the end of this fiscal year,
Sept. 30. and a deficit Of S5,500,0O0
for the next fiscal year.
This years anticipated deficit
would be met by transferring back
to the general fund, from the high
way fund, S3,222,821 of inheritance
tax funds.
Would Leave Balance
This sum is part of total of
more than S5,0OO,000 of inheritance
tax funds turned over to the high
way department in the last several
years.
1t is proposed to give the highway
department. credit for S2000,000 on
this total for the 100000 trans
ferTed from the highway depart
ment to the general fund a year
ago.
This transaction. the group set
cut, would wipe out the anticipated
deficit this year and leave a $4,000
600 working balance.
To prevent a deficit in the next
fiscal year, the group would declare
a tWo-year moratorium on highway
construction, divert S5,OO0O0O of
auto license fees from the highway
department, and effect a 10 per cent
reduction in personal service items
and other. operating expense.
1t was stated that salary cuts for
state employees are fair because such
employees are not subject to income
tax.
Strenuous in Objections
Members of the group we're
strenuous in their objections to
creation of a single new tax, de
claring the state government should
do as private business has been
forced to do-cut operating expenses
to meet income.
when a business firm is getting
in the red it doesn't assess it's
stockholders-it cuts expenses and
operates on its budget" said John
E. Friedrich, Kokomo, Indiana State
Chamber of Commerce president,
who opened the conference.
THE state government must econ
omize on luxuries, as business has
had to do. 1t must eliminate I'M
essential services"
Figures showing that the pro-
posed sales tax would raise excessive
sums Of $35 100000 between now and
the end Of the next fiscal year, Sept.
30, 1884, were presented by Virgil
Sheppard, state chamber statisti-
cian
With this tremendous sum avail
able, speakers charged, there would
be no incentive for state officials to
economic, adding that the sales tax
would be Just one more burden
which would add to the number of
/ bankrupt business firms"
Ayres' Side Is Given
Indiana firms would he handi-
capped by the sales tax in meeting
competition of plants in other states,
said B. w. Cooper controller of the
Delco-Remy plant at Anderson.
Plight of the large department
stores was explained by Victor Ken
dali, of L. S. Ayres & Co., Indian
/ apolis.
Our company gave $4,000 to the
Community Fund last year out of
capital funds. There were no profits
from which to take it., he said.
THE sales tax would cost us
/ S150,000 a year 1t would make it
almost impossible for US to stand
our share Of such relief activities
and, in addition, would force us to
( reduce our advertising and to slash
wages and reduce number of our
employees
Slight Friction Arises
"The three largest stores in IN
dlanapolis support $4,000 persons
and the sales tax probably would
force us to discharge hundreds of
breadWinners.
He said his store is employing
1880 people, only 100 less than in
better times when sales we're so per
cent greater, in an effort to prevent
unemployment.
The Only friction at the con-
ference arose when William Hol-
land, secretary Of the Indiana High
way Constructors Inc. protested
diversion Of road building funds
from the highway department. He
said fees paid by motorists should
be used to build roads. His remarks
were followed by scattered boos.
Suggestion that # a new tax is
needed to balance the budget, that
cigarets and tobacco be taxed. was
made by Louis J. Borinstein, In
dianapolis Chamber of Commerce
president.