Imperial Valley press., 1933-07-15
HEAVY TASK
CONFRONTING
LEGISLATURE
Adoption OF Taxation Program
To Balance Budget Certain To
Cause Bitter Battle.
OPINIONS WIDELY DIVIDED
SolOns To Reassemble At Capt.
tai On Monday Following Sew
eral Weeks Of Recess.
By THOMAS b. MALARKEY
United Press Staff Correspondent

DAN rfLfArO10SOp OulJ AZ. VIII
"A 212 per cent retail sales tax
was approved by the joint legisla-
tive tax committee just before it
adjourned today
The committee will reconyene in
Sacramento Monday to complete
details of the new taxation plan de-
yised to help balance the state bud
get. When completed, the plan will
be presented to the legislature.
SACRAMENTO, July Is. W.H -
The gravest tax crisis in the states
history will face California legis-
1ators when they reassemble in mid
summer session here Monday.
Despite strenuous efforts TO iron
out conflicting viewpoints in pre-
session conferences, there remains
wide divergence of opinion among
legislative leaders. So fundamental
are issues confronting lawmakers,
that the session may develop a
controversy rivalling the famous
King tax fight of 1921.
There exists a state deficit va
riously estimated at between $l22,-
100000 and $128,0O0,000. Seventy
six millions is represented by coun-
ties fixed school charges assumed
by the state.
If each citizen bore an equal
share of this deficit, every resi-
dent of the state would be COM
PEELED to pay one dollar a month
FOR two years to balance the bud
get.
The issue, of course, revolves
around ways and means of balanc-
| ing the budget. Cornerstone of all
plans is a sales tax. But they vary
widely in degree.
Prevailing legislative opinion, re-
flected in various conferences seem
to favor 212 or per cent sales
proximately s96,000,O00 in two years.
That would still leave the budget
$30000,000 in arrears.
Farm and labor groups urged this
gap be closed by personal in
come tax. But such levy has met
strong opposition of important leg
islGtive leaders, state officials and
prominent state civic organizations.
Plan Other Taxes
Another group holds the remain
ing $3O,Oo0,0O0 should be derived
from a number of additional taxes.
They suggest:
Increase the beer tax to one cent
each half pint, $l1 100000 biennium.
Stepping up inheritance taxes,
$l,500,000
Revision of uneXpended appro-
priations to the general fund $780,
600.
Dollar increase in licerse plate
fees, $4,OO0,0O0.
Gas, electric, telephone and tele-
graph consumers Surcharge tax,
S10,00O.000
Stock transfers tax, $1,325 900.
Amusments tax, $6,000,000
Still another legislative bloc IA
vors raising around $90,000,000 by
the retail sales tax route and per-
uniting the state to run into the
red for the remainder.
the session will open IN pugna-
cious mood Nienty-nine guberna-
torial vetoes will be submitted to
each house. Some, it was rredicted,
may be overridden. These include
the $5,00c000 state employees SAL
ary reduction bill; oleomargarine
tax measure; anti-joyTide bill;
cluster of school economy measures,
county government bills and judges
salary cut measures.
Two addition factors will compli-
cate this session:
/. Various departments. assist
ed by the administration, will ap-
ply pressure for additional appro-
priations.
2. New legislation other Than tax
measures will creep il despite legis-
lators' efforts to stop it.
Best estimates indicate the ses-
sion will last 10 days.