Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-01-26

plenty Of objections to the tax. though
probably not any more than would
oppose any other kind they are con-
scious Of paying.
| On the other hand, people seem
to be pretty well agreed that 1t Is
wise to avoid the glazing injustices
that would 60 with consumers
sales tax, which bears hardest on those
least able to pay. Let us suppose q
man with = family owns small home
and earns only 500 a month. Under
the present plan in Indiana the tax
on his home IS lower sthan it used
to be, $1,000 of his gross income is
exempt and his tax is only 81. He
presumably spends his entire income.
and. with 3 per cent sales tax. such
as is used in the neighboring States
of Ohio and Michigan, his total as
sessment would amount to $50.
The fact is, though, that, in prac-
tice, there is sales tax here and
there, since many stores do pass their
l per cent charge along to the public
in increased prices for their goods.
Whatever the flaws may be In the
entire Hoosier tax scheme, there Is no
gainsaying that Indiana Is getting
along well. The State, under q law
passed at the same time as the new
tax laws. must pay at least $500 Of the
salary of every public school teacher
in the State. and may pay up to $500.
No teacher draws less than $500. The
consequence is not only that all schools
have been kept open an, up to former
standards, but many now have better
teachers than before.
Taxes Definitely Downward.
For several years the legal limit Of
taxation on property has been $3.50
for each 81 900 valuation but this can
be raised when the tax board of any
county declares an emergency. How
ever, the tax demands IN property have
been definitely downward
In the 1872 fiscal year, property
and poll taxes yielded 1853 cents Of
each tax dollar received, but this last
year property and poll taxes amount
to only 90 cents of each tax dollar.
(The poll tax is $3.50 for each male
between ages Of 81 and 50.)
Another unusual feature of the Indi-
ana revenue scheme Is the method Of
assessing taxes on intangibles; that is,
on stocks or bonds which the owner
might forget to report. Prior to 1888
these were taxed fairly heavy on
their yield, but the law was not well
enforced. Under the new law, the tax
is paid in the form of q stamp to be
affixed to each bond, stock certificate
or other securities at the rate Of Is
cents a year for each 500 value. No
security can be transferred. inherited
or used for collateral at bank unless
the stamps have been attached. and.
il you are late getting your stamps
affixed, then after certain day you
must pay four times the regular tax.
The revenue from this source is
increasing. Last year the returns
from intang1bles were about the same
as from the inheritance taxa little
more than 81 ,000, 900 from each source.
Auto Users Big Contributors.
While the broadening of the rev.
enue base in Indiana. notably by
means Of the gross income tax, has
worked pig changes, it IS still true
that the most important tax source
is automobile users. The 4-centS-a-
gallon gasoline tax yields more than
q per cent Of the total, and another
10 per cent comes from automobile
license plates Oil inspection, driv-
ers' license. and other fees in connec-
ton with automobiles bring the total
to about 40 per cent.
I asked one of the State tax col
lectors i h. didn't think the auto
mobile was doing more than its share
toward State expenses, but he showed
me fig'nes which proved that the
money trcn. automobile drivers and
owners lust about equals the amount
disbursed b, the State for highway
purposes last year.
Gov. McNutt, whose four-year term
as Governor ends next year, frequently
points to Irdiana's tax situation as
one OF his most important admins
tration achievements. But the same
Republican who unsuccessfully OPP
posed aim in the gubernatorial race
! in 1892 Is now preparing to seek the
nomination again On q platform adj
vocating repeal Of the gross income
tax. In other words, even though the
tax has helped to place the State
In an enviable financial situation. it
is still TO be a political issue.
(Copyright. 1886 by the North American
Newspaper Alliance. Incl