Imperial Valley press., 1935-10-23
H E A R s I
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budgetary program suggested by
Gov. Frank Merriam
He declared repeatedly editorial
~ and in person that the law would
drive capital and the movie indus
try from the state.
Louis b Mayer. vice president Of
the Metro-GoldWyn- Mayer Studios.
Joined the fray. and other recruits
were Charles G. Norris and his
wife, Kathleen Norris. writer.
Legislators in passing the bill
however, frequently criticized its
opponents because none OF them
actually came to Sacramento to
combat it.
It appeared that Hearst would
lead the way in an eastward
movie trek with a report he would
confine his own motion picture ac-
tivities, represented by CosmopOli-
tan Productions. to New York
To Close Ranch
The publisher said he would close
his San Simeon ranch which
sprawls over an area Of IS by so
miles along the coast near San
Luis Obispo. said to be worth more
than S25,000000 Variety said the
property might be sold.
Hearst's way OF calculating the
tax total he said he would have
to pay if he remained in Cali
fornia, set the federal surtaX at Sc
per cent and the state tax at IS
per cent, the balance to be made
I'D from normal federal income |
taxes. and other assessments here /
and in New York. according to ac- /
countantS.
It was estimated that all incomes /
in the neighborhood Of SI000,00O F..
or larger would be subject to sim /
liar levies.
Many Affected
Among those who it is estimated /
would have to pay 70 to 90 per cent |
of their incomes are Mary Pickford, /
producer and screen star; Wallace |
Beery, film and radio actor: Louis .
B. Mayer; Bing Crosby, crooner;
Samuel GoldWyn, chairman OF the |
United Artists board Of directors
Irving Thalberg. production chief
Vi R-ES2O-SOANA - --h-eAN II wv A----
Shearer. actress: Myron SelZnick
top-hght actors agent; Ernest Lub-
itsch, Paramount production chief.
and many others.
An odd feature Of the tax scare
under discussion at studios today
was that a great many OF the high
est paid actors were reported re-
fusing to work in order TO hold .
their incomes below the surtaZ
point.
1t was explained that if the film
great make too much their net in
comes shrink to figures smaller
than if they make less.
II hope still TO be able to spend /
some time in California" Hearst
said in his letter. But I am COM
PEELED to close my places and live
almost entirely in New York.
Would Not Leave
Heaven knows. I DO not want
to leave California. No one does,
least of all a native son whose
father was a pioneer; but it is Ut
terly impossible for me to remain
here and to occupy a place like San
Simeon, on account of the federal
and state tax laws.
What I do, however. is
of little consequence, but I fear
that a great number Of people
with considerable incomes are
planning TO reside elsewhere and !
that a great many who had in
mind to come in California and to /
remain here for at least half Of |
their time. are realizing the utter /
inpossibility Of doing SO.
The California law contains the /
peculiar provision that if anyone, !
even though a citizen Of another |
state. remains in California six |
months Of fSy year he thereby be- F.
comes Tor that year a citizen Of |
California and is subject to the /
California income taxes in addition f.
to the taxes he has 10 pay in the |
state where he has his actual and /
legal residence.
This, of course. will prevent /
many well-to~do people from being
even part-time residents Of the
state"