The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-07
LUXURY TAX
BILL IS READY
To Be introduced in House
When Revenue Bill Is
Considered
By J. c. BASKERVILLE
The Times News Bureau
Sir Walter Hotel

Sir Walter Hotel
RALEIGH. April IA new So
called luxury tax bill has just
been completed by Representative
Harris Newman of New Hanover
and Senator John Hinsdale of
Wake and will be introduced IN
the house as soon as the revenue
bill gets under consideration, it is
being reported here today. This
new bin imposes a tax on the
users of electricity, gas and tele-
phones and also imposes a heavy
tax on clothing for men and wom-
en-. on sugar, coffee and kerosene,
as we'll as on cigarettes. soft
drinks, candy and cosmetics.
The trainers of this bill are
planning to introduce this meas
ure as a substitute for the general
sales tax section which it is now
certain will be contained in the
revenue bill when it is finally
brought In by the house finance
committee. it is understood. The
authors of this bill maintain that
it will Weld between $7,OOO,OOO
and $S,0OO,000 a year in revenue,
or as much as a 5 per cent gen
cral sales tax.
The schedules in this bill III
clude the following: a tax OF .
per cent on all domestic gas bills,
to be paid by the users; a 2 per
cent tax on all household electric
bills. 10 he paid by the consumer;
a tax Of 10 cents per month to be
charged every telephone Subscrlo-
or in the state; tax Of 5 per cent
on al mems suits up to $50 and
10 per cent on all above that
price.
The tax on sugar would be l
cent per pound, or at present
sugar prices, equal to a 20 per
cent tax on sugar. Coffee would
be taxed 2 cents a pound and
kerosene | cent a gallon. The tax
on soft drinks would be ] cent
per bottle. making all bottled
drinks 6 cents per bottle. The
tax on cigarettes would be 3 cents
on packages of IL or more and z
cents per package on all of less
than II cigarettes. The tax on
cosmetics would be 10 per cent
and 10 per cent on al candy cost
ing 80 cents a pound or more:
While there is a good sized bloc
in the house that Is believed TO
prefer a luxury tax 10 a So-called
luxury tax. It is regarded doubt
full if a luxury tax bin Of this ma
ture can be passed IN the house
and it is expected to meet some
stiff opposition. II IS already be-
ing pointed out that most of the
things this bill processes to tax
AS luxurics are really necessities,
such as gas, electricity and tele-
phones. II is further maintained
that electricity and telephone calls
arc now being taxed by the fed
cral government and that 1t would
not be fair to put this additional
burden upon the class of people
that must use gas. electricity and
telephones.
Sugar and coffee are regarded
BY many people as being cSSentlaI
and necessities, along with cloth
ing. With people who live in the
country or do not have electricity
available. kerosene is a necessity
for lighting and cooking. This
leaves only soft drinks, cigarettes,
cosmetics and candy as the only
real Injuries in the llSt-and
many people regard one or more
Of these as necessities.
But it is agreed that the taxing
Of only these so-called luxuries
would not yield anywhere near
the amount of revenue needed. -,
1t is regarded as possible. OF
course, that the advocates of this
tax plan may get enough support
10 substitute it for the 3 per cent
general sales tax that will prob
ABLY be recommended by the
finance committee. But the pre-
vailing opinion here today is that
since this bill taxes almost all OF
the more common and most used
necessities, the general assembly
might as we'll go Il little farther
and put a general sales tax. at
much lower rates, on everything.
The principal argument in favor
Of the general sales tax instead OF