The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-05-02
TAXATION OBSCURING ALL
OTHER ISSUES IN PRESENT /
STATE CAMPAIGN, Is SAID
capus Waynick Shows Sales Tax Effective III ~.
With New Policies; Failures Have e, Dec ere
Utilities Tax Already Heavy in lhs ota'e

-. &c tho choice which had al
49, u. forced itself on the mem
bers of the finance committee.
S SOME APPARENT RESULTS
What of results? The states
credit has been restored and its
socnritIes are in demand at a rea-
sonobIe interest rate. The schools
are open to all North Carolina
children and other essential pub
lie services are being rendered,
even though under conditions ire
quently furnishing to the pubic
servant.
An argument against the sales
+ax was that it would accelerate
the rate of bankruptcy among
merchants. Bankruptcies have de-
creased, because business is bet
Ter. We find many merchants are
withdrawing moro or less quietly
from active cooperation with the
anti-sales tax forces.
I am. not contending the sales
tax has increased the merchants
business and saved him from
bankruptcy. am not contendlns
the tax is not burdensome to the
merchant and the people. l am
not suggesting the sales tax has
caused the volume Of trade IN
North Carolina to increase at a
faster rate than that of Virginia
in the very months when propn-
cts of disaster said our business
would be going to Virginia.
do submit however, as rea,
sonable conclusion that restored
confidence in the ability OF the
state to meet its financial ana
moral obligations, has had much
to do with stimulating industry
and inspiring public faith.
Many have concluded that the
most hazardous prospect before
the state is the possible effect on
business of a new, infamed hunt
for revenue to operate the
state government and the public
schools.
IN ACCORD WITH NEW DEAL
The theory under which the
state administration, as well as
the national, is now proceeding
is that a greater buying power
| must be distributed among the
neonle
The new deal of President
Roosevelt includes more aoun-
dant distribution Of the dement's
of labor. Governor Ehringhaus
has given himself with passionate
devotion to advancing the same
high purpose in North Carolina
Witness his cooperation with the
| federal program, his leadership IN
procuring better prices for, TO-
bacco and other crops. The buy
ing power of the people OF TINS
state has been increased by gov
eminent effort, many times the
whole sales tax bill.
Isn't it a better policy to work
for a fair distribution of buying:
power among all the people ana
the establishment of a broad tax
base, than to look only to concen-
trated wealth for support OF the
state while the people are LETT
headed towards condition not
unlike serfdom?
SALES TAX is EFFECTIVE
Some publicists spread tile
charge the sales tax has failed tn
produce the estimated revenue.
What are the facts? The highest
estimate of revenue from 3 pei;
cent sales tax was $9,OOO,OOO anu
this was reduced to SS,4O0,OoO
when certain basic commodities
were exempted. =,
The first six collections. brought
in S3,317,74 and it is not un-
! reasonable to expect the twelve
months to produce double that
amount, or $6,635,49O. 1t is not
unlikely the final record will De
S7,O00,OOO for the year. Short CT
the mark, but enough revenue -
be a vital consideration in rewrlt-