The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-05-01
OF
FOOD FAVORED
Omission Of Sales Tax on
Some Provisions Wide
Iy Approved
The Timcs-NewS Bureau
Sir Walter Hotel

RALEIGH, May 1.-The pro-
vision written into the revenue
bill by the senate eXempting Ger
tain basic foodstuffs from the Z
per cent general sales tax IS re-
garded here as the most workable
plan Of taking some of the sting
out of the sales tax than has yet
been advanced, and it is meeting
with almost unanimous approval
among even those members or
the legislature who are opposed
to even the principle of a sales
tax. The senate plan represents
a compromise between two diff
ferent methods of relieving sim,
pie foods from the sales tax, and
q number of leading members o.
the house were consulted by the
senate members in effcctinG the
compromise plan, and it met with
not only the approval Of the SEN
ate members, but also those mem
bers Of house who were called IN.
Thus there is little doubt in
the minds Of observers here THAI
the senate plan Of cXemptlng
basic commodities will meet with
wide approval in the house, and
that the lower body of the gen.
cral assembly will not attempt to
work out a better plan Of OK
empting the poor mans food.
That the senate is thoroughly
"sold" on the plan was indicated
when that body passed the CON
promise" amendment by a unanl-
nous vote, 46 to 0. Quite a few
senators who had previously voted
against amendments eXcmptlng
foodstuffs voted for the compro-
mise plan, since they were conf
dent that it is both practical and
workable, and will in no way en-
danger the administration OF the
general sales tax.
This view was shared by Sena"
tor Bailey of Washington, Il did
not vote for the earlier amend"
ments exempting foodstuffs," he
said, mot because l was opposed
to exempting these foods, but be-
cause | felt that they were I'M
workable and would have the cf"
feet of tearing down the admin
istration of the sales tax. But
the compromise plan that has
been worked out is to my mind
altogether workable, and l shall!
gladly support it."
The food exemption amendment
now contained in the revenue bill
supplants two similar amend
ments that were previously
adopted in the senate. One OF
these, introduced by Senator
Blackstock of Buncombc, and
Francis of Haywood, exempted
flour, meal, milk and lard. The
other, introduced by Senator Hill
of Durham, exempted all sales of
necessary foods" up TO $1,000
and exempted 10 per cent of the
tax above that figure. 1t would
have left it up to the commission
CT OI ISNClluC " NSIGLlllAiAC A|tS
foods were necessary foods"
The commissioner Of revenue
estimated that either of these
amendments would have sliced
81, 100000 from the yield of a
sales tax, and that since they
overlapped, both would take off
about 81, 100000. However, the
senate found after studying the
two amendments, that neither OF
them were specific enough. and
proponents of the two amend
ments, together with Senator
Rankin, chairman of the finance
committee, and interested mem
bers of both houses got together
and worked out the plan that was
finally adopted by the senate.
This plan exempts flour, meal,
meat, milk, salt, sugar, coffee
and molasses. 1t goes much fur
ther than either of the other two
amendments in defining these
commodities. For instance flour
is exempted, but not cereals
fresh meat is exempted, but not
canned meat; lard, but not but
: ter and similar products; milk,
but not canned milk; sugar, but