Henderson daily dispatch., 1935-04-06
Revenue Too Small Despite
Restoring 3 Prcnt. Sales Tax
,onmtiDn-d trum rage ons.)

way fund. which may amount to $780,
600 a year more than was authorized
by the house. the revenue bill still
VacM $1t64J.542 of balancing with
the appropriations bill for the next
two years. according to the estimates
Of Commissioner of Revenue A. J.
Maxwell if only $1,630,OOO is diverted
from the highway fund. If gasoline
sales increase as they have becn in
creasing the past few months. or at
the rate of 10 per cent, the amount
diverted will probably amount to ST.
100000 a year. But even then the re-
venue bill will still lack 81 ,542 of
balancing with the appropriations BILL
The total amou.@ of money which
the revenue bill will yield as it was
reported into the Senate today, As
estimated by Commissioner Maxwell,
is as follows:
First year 0935-36) ..... 31.O12, 600
Second year 0936-37) .,... 32,012 600
Total for biennium .... $63, ,O24 900
The expenditures called for in the
appropriations bill as passed by the
House and now in the Senate, for each
OF the next two years are:
First year u935-36) 80. $3f. .461 ,247
Second year d936-3O 49,. 33,21Q,295
Totel for biennium . .S64, ,671, ,542
The appropriations bill figures pro-
vide for an increase in salaries of
school teachers and other State en-
ployes of only 20 per cent and the
first year 25 per cent the second year.
In order to make the 25 per cent in
crease effective for both years, the
Senate will have to increase the ap-
preparation for the first year by $780,
900. This would throw the bills more
than $2.OO0,OOO out of balance for the
Diennium.
If the Senate would put the tax on
/ dividends back into the bill, it is ag
reed that the bill would yield at least
$5O0,000 a year more while some be-
lieve this tax would yield as much
as $1,000,00O year in additional rev.
enue. But most observers agree that
there is not much likelihood that the
Senate will consider reinstating the
dividends tax unless the House forces
it to do so by refusing to accept the
Senate amendment removing it. But
history in past sessions show that
the House usually recedes more q1icA,
ly than the Senate when revenue bills
go to conference.
Senator Newman, chairman of the
Senate Finance Committee, does not
agree entirely with the estimates pre-
pared by Commissioner Maxwell and
maintains that the revenue bill. as it
| now stands, will yield at least S31,-
! TAI. 600 the first year of the next bien-
MUM and $32, 600 the second year,
as the result of morel LIBERAL estimates
he has made as to the yield from the
different taxes in the bill. If Senator
Newman's estimates are correct, the
bill will yield surplus in excess of
appropriations of $285,753 the first
wear and will fall short of appropria-
| tions the second year by only $573,295,
with total difference for the bien-
mum of only $288,295 He believes that
this slight difference can be easily be
taken up and the revenue be made to
show slight credit balance for each
year of the biennium.
| But Senator Newman not only
wants the bills to balance as they
now stand, but wants to find an ad
ditional 100000 for the first year of
the biennium so that the salaries of
teachers and all other state employees
may be increased to a 25 per cent
boost for each year. If the committee
had retained the dividends tax, as he
wanted it to. the revenue bill would
now yield sufficient revenue to make
the 25 per cent salary increase for
teachers and all other state employees
possible for both years of the bien-
MUM. This increase would still be
possible if the senate and house would
enact the Hill liquor stores bill or if
the Senate would put the dividends
tax back into the bill. But neither of
these alternatives now seem to be
tlkely4 ~t,4,A