The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-05-20
PROPOSES new
TAX TO FINANCE
WELFARE LAWS
Head of Farm Bureau in
State Urges Mel Income,
Liquor LevieS.

Lewis Taylor, Indiana Farm
Bureau president, today recon-
mended that the states social secur-
ity program be financed by a cor
porate and personal net income tax
with rates suicient to produce
revenues required by the Welfare
Act"
He suggested that the special tax
committee set up by the Legisla-
ture also considered the revenue
possibilities Of the liquor business.
THE committee should have little
difficulty in finding sources of rev.
enue other than property, out of
which all state ana local expendi-
lures for the Welfare Act could be
paid, without doing undue violence
to taxpayers" Mr.. Taylor said.
"A late report by Will H. Smith,
United States Collector of Internal
Revenue, sheds much light on this
subject. 1t reports income taxes
collected right here in Indiana, for
the ten months period ending April
20, 1886, amounting to SIC, 178, 678.12.
AT this rate, about $20,000,000 from
this source will be collected during
the 12-month period. Does the COM
mittee think that an additional
amount of income tax, equal to half
the Federal tax on net income,
would be a crime against citizens
OF Indiana now earning such net
incomes?
Raise Cry Against Taxes
without looking further, enough
revenue could be secured to meet
almost the entire needs of the We'll
fare Act at would be, of course,
double taxation, but 81 states, sub
ject to Federal taxes just as In
diana is, now are levying personal
and corporate income taxes. If our
General Assembly had the backbone,
1t could easily secure enough
revenue from this source alone, the
fairest tax there is, to meet the
requirements of the Welfare Act.
The cry is raised that it is unfair,
1nequitable and unjust to have both
a gross income and net income tax
There are very valid objections to
nearly all taxes. Those who now
pay Federal income taxes also pay
gross income taxes, and, because
they have greater spending power,
consequently pay more gross income
tax than the less fortunate.
"On the basis of ability to pay,
there is at present in our state no
form of taxation that adequately
taxes the net income class, and for
that reason, we believe that the
next Legislature should Immediately
enact corporate and personal net
income tax with rates sufficient to
produce revenues required by the
Welfare Act.
Liquor as Tax Source
'This committee also should con-
slider the revenue possibilities of the
liquor business.
THE Federal government, during
the last 10 months, collected from
producers of distilled spirits in this
state, $24,665, 1888, and from beer,
$6,988 20011, or a total of $31, $685.
359.04. Our state, from various
liquor sources, managed to collect
$4,374 $500. This also Is double
taxation. Inasmuch as consumption
of liquors is a large contributing
cause for need of a welfare law, why
not substantially tax the production
and traffic here in Indiana to care
for their wreckage?
"A tax, half as high, would produce
revenue sufficient to pay big well
fare bill. Then our statesmen should
have little trouble in seeing the
revenue possibilities of a gift tax,
and a tax on the gambling opera
tons of various exchanges, or, in
creasing gross income taxes, and
doubling the intangible tax. We
realize, however, that there is an
election in the offing, and during
this period some folks are moon
L.; x,L INr;I