Imperial Valley press., 1935-01-23
BY GEORGE f. HELMER

United Press Staff Correspondent
SACRAMENTO, Jan. 23.-Gover-
nor Frank Finley Merriam asked
the California legislature today to
raise S143, 100000 in new revenue to
meet governmental expenses and
aid unemployment during the 1885,
81 biennium.
The executive, in his budget mes
sage to a combined session of the
two houses. said S228, ,266, 1873 would
be needed to balance necessary eX-
penditures of the general fund. He
recommended that an additional
SAT 100000 be raised for unemploy-
ment relief.
Since only S132, $50 can be ex-
pected from existing revenue Sourc-
es. new taxes must be levied to raise
the additional S142,923, 1872 needed
to complete the administration IS
financial and humanitarian plans
Merriam recommended 10-point
program for raising funds needed
/ to balance the budget.
Chief among these items was his
proposal to increase the retail sales
tax to 3 per cent, for an added
yield of s42,0O0,000. Under the
present act the rate will drop from
219 to per cent July l.
A personal income tax, one-third
the federal normal and surtaX rates,
was recommended as source for
$1750O,000 A two per cent process
ing tax and severance tax on all
natural resources would Yield S12,-
100000. Merriam estimated.
Other proposals in his 10-point
plan were:
Tax real lestate transfers one per
cent on the value of sales, $4,000
900.
Increase bank and corporation
franchise taxes from 2 to 4 per
cent, S11000,000.
Tax admission to theatres, games
entertainments, one cent on each
10 cents, exempting the first 20
cents, S4,00O,oO0.
Raise the tax on beer from two
! to three cents a gallon, S1,000000
Tax Intoxicating liquor sales 40
cents per proof gallon, s2,400000.
Increase insurance gross premium
! tax rate from 2.6 to per cent, S.
600, 900.
Increase motor transportation tax
from 8 to s per cent and eliminate
| personal property tax, s1,400000.
I Estimated total from all these
| sources, SLOT, 100000.
Propose Alternative
/ AS an alternative plan which may
/ be substituted for some of the other
recommendations Merriam propos-
I ed elimination of personal property
/ taxes on motor vehicles and levy
/ ing OF fees in lieu thereof for state
! purposes. He estimated S25,O0000o
could be raised in that manner
without increasing the tax load on
/ the individual automobile owner.
/ He recommended that S47,300000
/ be provided for unemployment re-
/ lief and used exclusively in a pub
| lie works program, not more than
| so per cent of the fund to be eX-
| pended for state buildings. He made
no mention of production for
use" plans advocated by Democrats.
| To raise the amount he suggested
! he would:
l. Tax gasoline one extra cent
(the present tax of three cents a
! gallon is used for highway con-
struction), s23, 100000.
2. Place a 3 per cent consumers
] tax on gas, electricity, telephone,
/ telegraph and other utility services,
both publicly and privately owned,
/ s16.000000
/ 8. Tax tobacco. two cents per
! package Of 20 cigarets and 10 per
cent on ether products, s8,000000.
In explaining his desire TO in
crease the sales tax, Merriam point
/ ed out that state contributions to
public schools will exceed S142 5O0,-
600 during the next biennium. The
maio~ part of this sum will be pro-
Weed by a school tax levied on re-
tail sales.
.eBecause of the unsatisfactory
condition of our finances, he said.
land the obvious necessity for
maintaining our schools at their
present high standard of efficiency,
I am convinced that during a con-
tinuance of our present emergency
conditions this type Of tax can car
nv an even greater share OF the
school costs"
His financial program was termed
ndaringO and Liberal" by ad-
rnioistration supporters who admit
ted they expected the sales tax
Gas tax and severance tax measures,
..o,.tfe,,larlv 10 encounter Strenu-