The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-08


liquor, penolOgy and crime.
summary to make a forecast
istration's plans.
The purpose merely is to
touch on the high points of
the most controversial SUBJ
jects which will come before
the assembly and to outline
the probable forms which
legislation on these subjects
may take.
Some Of the subjects which might
be classed roughly in the broad
groupings of social. taxation and
governmental reform legislation are
allied, such as taxation and liquor.
However, the subjects are so di-
verse and cover such a wioe area of
public interest that they can not
well be classified other than in
three groups.
In the first, taxation, falls the
gross income tax and its future.
There appears to7be little doubt that
the gross income tax is scheduled
for at least two more years OF life
and here is little likelihood Of it
being supplanted by the 3 per cent
sales tax proposed by Indiana retail
merchants.
Like any tax, the gross income
tax is unpopular, but it is the belief
of CIV. Paul V. McNutt and his
legl. ative advisors that substitution
of a sales tax for the gross income
tax would mean a higher sales tax
than that proposed.
Farmers Back Gross Levy
The gross income tax produces
approximately S12,000,000 annually.
Most of this revenue goes to pay
part of the salaries of all public
school teachers and admittedly IS
one of the reasons that Indiana'S
schools financing has been so sue
cesSful in contrast to the chaotic
conditions in other States.
One element of the organized
farmers is said to favor doubling
the present gross income tax rate.
Organized labor is reported OPP
posed to any sales tax which en-
tails passing the levy on to the con-
sumner by means of a receipt or
stamp.
The 22-member tax advisory COM
mission named by Gov. McNutt is
scheduled 10 hold a final meeting
TO-DAY and make its recommended
tions to the chief executive Appar-
emily. they have reached an i'm
paSSe.
1t appears reasonably safe to pre-
dict that the gross income tax will
be maintained and that the changes
in it will be comparatively minor.
S1.5O Limit Upheld
Another tax problem before the
commission, and one which is GER
tain to be one of the most contro-
versial of the session. is the $3.50
tax limitation Law.
There is a strong sentiment
chiefly among the farm and real
estate interests, for strict adherence
to the limitation and for repeal of
the emergency clause by means of
which many taxing units evade, per-
hapS through absolute necessity, the
intent of the law.
The tax limitation law limits lax
levies to $3.50 in cities and to ST
in rural areas on each 500 of tax
able property. The emergency clause
permits the declaration of ar
emergency and for exceSSion of the
limits. The word emergency
never has been defined satisfactorily
in relation to the tax limitation law
No one. including the courts, seems
to agree.
The way out of the $3.50 tax lin
itation dilemma appears TO be
through one contemplated reform
an effort at which had only an
abortive life in the 1888 session.
Exemptions Under Fire
This is the raising of additional
revenue on the property tax by put
ting back on the tax duplicate real
estate which has been exempted
For years. property owned by reli-
giouS. fraternal, educational ano
other nonprofit making groups has
been getting by without paying its
share Of the tax burden.
Much Of this property actually
was revenue producing, regardless OF
its owEership. and thus was in CON-
petition with property which was
without dispensation and which was
taxed. It almost is certain that q
bill TO place such property back on
the tax duplicate will be presented
and il has more than a fair chance
Of enactment.
The possibility of an increase in