The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-21
PROTEST HITS
NEW PLAN FOR
INCOME TAXES
Eli Lilly Co. Official Asserts
Burden Will Be Great
on Business.
SUBSTITUTE is OFFERED
Small Levy on IntangibIeS,
Another on Earnings
Is Suggested.

Proposals for a small intangibles
tax, with heavy penalties, and a
small gross income tax were offered
to the house of representatives ways
and means committee Friday at a
public hearing as alternatives to
the administration income tax bill
which the committee is considering.
Nicholas II. Noyes, treasurer OF
Eli Lilly g. Co., was the first witness
before the committee. He declared
that the l to per cent administra-
ton bill, taxing personal and cor
poration incomes, lays too heavy a
burden on business, which already
is staggering under tax load.
Recognizing, he said, that the
committee is confronted with the
/ necessity of raising money, Noyes
suggested the most equitable means
of revenue raising would be an IN
tangibles tax on a one-half OF per
cent basis, with heavy penalties.
With the tax small enough and
the penalties heavy enough, such
law would bring out great deal of
sequestered wealth, he said.
No Burden on Business
AS second alternative, Noyes
suggested a similar scale for income
taxation, pointing out that such a
small tax would not impose a bur-
den on either the individual or big
business. Business, he said, would
absorb a small tax rather than
pass it on to the customer.
The increasing tax load, Noyes
asserted, tends to drive industry
from Indiana into nontaxable Sc
curities. wisconsin, he declared, is
losing big industrial firms because
of it's income tax laws.
Another unfortunate feature of
an income tax law, Noyes pointed
out, is that it is unreliable, produc-
ing heavy revenue in fat years and
not much in lean years, tending to
bring governmental deficits.
Others Offer Objections
w. A. Hanley, also from the Lilly
company, offered the same objec-
tons, as did William H. Book, rep
resenting the Chamber OF Com
merce.
Z Arguments for the measure were
advanced by Lewis Taylor, tax and
legislative representative of the IN
diana Farm Bureau, and 0. 5. Boil
ing of the same organization.
Taylor declared the income tax is
one that never causes business
failure. because it is based solely on
income.
Moves was questioned by members
of the committee on his statement
that many men of large wealth now
are paving rs cents on every dollar
thew make. for taxes. Noyes re-
torted that large incomes pay So
per cent federal income tax after
corporations from which the income
is derived have paid a 1872 per cent
tax.
Add to that personal property
taxes. said Moves, and the IS per
!, cent tax figure is Appropriated.
Hearings are Framed
Boiling offered formula which
has been worked out to avoid the
staggered scale of tax payments
which arises from the fact that
some incomes fall Just below or just
over an income tax base for assess
ment.
The ways and means committee in
tends to hold several public hear
ings before taking any steps tc
amend the bill or report it out tc
the house III its present form.
The bill, AS now drawn, provides
a deduction of Sc from the amount
of tax paid by single person, $l1
by a married person, with 81 ad-
, ditional for each dependent under Is