Evening star., 1935-01-13

Oh IruSC QeeQS, mortgages anu
by twoScore lawmakers in a Su
and hold-over Senators and ASse
Paralleling expressions of approval
on varied social legislation was sin
gularity Of agreement on the need for
. State income tax and increased
inheritance, liquor, truck, bank and
corporation franchise and insurance
taxes.
Tax Increase Opposed.
But in another direction an almost
solid front was massed against q
question of adding cent to the States
Scent gasoline tax, which brings in
some $60,O00,0OO a biennium, for the
purpose of relieving a heavy budget
deficit.
An expression almost as emphatic
echoed against proposals for di-
version of any Of the gasoline tax to
ease State government costs.
A majority Of those who expressed
an opinion favored the retention of
the present sales tax of 2la per cent,
which returns about $100,00o,0 900 a
biennium to the State treasury.
Virtually an even diversion of opin-
ion existed on the need for an ad
valorem tax in balancing the budget.
Half said mo" definitely and the
others made such comment as II hope
not" indicating they doubt it could be
avoided.
Balanced Budget Expected.
A majority said decisively they be-
heved the budget, which faces a pos
sible def1ct of $130,000,0O0 in the next
biennium, would be balanced
As many offered the opinion that a
more logical plan would be to bay of
the deficit of the current biennium,
expected to reach $32,O0O000 over a
period Of five or six years.
Suggestions for old-age pensions
ranged from a payment of $25 a
month to all needy more than 65
years old to proposal for spending
100000 month on 100000 aged.
The famed Townsend plan was de-
nounced by more than half of those
who made replies, and only three ap-
proved it. Most all who turned against
1t favored some substitute"
A proposal that a State income tax
OF 20 per cent Of the Federal rate be
levied to pay the cost Of u pension
system was argued by Senator Ralph
E. Swing, veteran San Bernardino leg
islator.
Job Insurance Favored.
There was less disagreement on un-
employment insurance, favored by
most. A typical answer:
Il believe that it Is a social benefit
that must be considered. I do not
believe that anything of importance
will be done this session. 1t will be
very embarrassing to the State which
tries to pioneer the field. 1" I believe
the Federal Government will take
some initial action"
There was general agreement in
favor of a 30-hour week, but few
suggestions were made for develop
ment Of it. Those who spoke viewed
1t as national problem
General favor appeared toward a
State system Of public works, which
one legislator thought would cost
$50 0,000, 900. Another said the cost
would be too great.
Income Levy Favored.
Estimates ranging from 80 to 120
million dollars were made on the
financial needs for unemployment re-
lief, while opinion was about equally
divided on whether the State should
support such a measure through bond
issues or taxes.
The proposition of an income tax
came nearer striking general agree
ment than any other.
An overwhelming majority favored
imposition of such q tax and some
proposed a rate structure between 20
and rs per cent of the Federal levy.
Exemptions ranging from $4,000 to
$4,000 were suggested.
Expressions on an ad valorem tax
were negative, although one legislator
said the tax was inescapable If the
budget was to be balanced.
Opinions differed frequently on the
sales tax. Most legislators favored
retention of the present 2la per cent
rate, scheduled under the law to slide
to 2 per cent next June. Others
wanted to abolish it on necessities and
increase it on other sales to or 31a
per cent. Only three were IN favor
or repeating it.