The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-14
Change to Increase State
Receipts 100000
Hinted by McNutt.
AWAITS U. S. ACTION
Reform May Be Necessary
for Social Security Pro-
gram, Is Report.

Revision of Indiana's gross
income tax law for future
financing of Indiana's partici-
patton in the Federal Social
Security program is possible,
Gov. McNutt indicated today
on his return from Washing
ton.
The Governor also limited that the
state may find it necessary to take
over operation of county benevolent
institutions such as inf1rmaries and
orphan asylums. He refused to
amplify his statement that:
ut might be in the program"
Redefinition Only Likely
Any amendment to the gross in-
come tax law would involve only q
redefinition of some types of tax
payers, he said, and would not affect
the one per cent levy now paid on
wages by individuals. The redefi.
nitions would be based on the ex-
perience the state has had thus far
in taxing wholesale and retail trans
actions, according to the Governor.
If carried out, the contemplated
change in the income tax law would
raise approximately 100000 more
a year, he said.
The Governor also said that pres
ent estimates of Indiana's share ~
the social security program call for
an expenditure of approximately
100000 in addition to the amount
now being expended by both tbs
state and counties for all types Of
social welfare.
Silent on Special Session
He said he did not have an ac-
curate estimate now of the total
amount being expended, but that it
probably was in the neighborhood
of $5,000,000 year.
There now is between $4,000, 900
and 100000 in the state treasury
and this money can be used through
legislative appropriation to pay for
the f1rst-year cost of the program.
The Governor refused TO indicat0
when a special session of the Legis-
lature may be called, but repeated
that his action will be dictated by q
passage of the deficiency appropria-
tons bill in Congress.
He coid he loo nod xr,11;Ia ;x,y VIZ.
ington that there is a possibility
that the bill may be sent back to
the House of Representative for re-
writing. 1t is in the Senate now.
Predicts No Tax Increase
1t would be useless to set up the
Indiana machinery until the Fed
eral matching money is ready, the
Governor pointed out.
Asked what he thought was the
likelihood of the United States Su.
preme Court upSetting the social se-
curity program, as it has done in
the cases of other New Deal legis-
lation, the Governor commented
that any legal attack on the meas
ure probably could not take place
until tax collections were started.
Gov. McNutt reiterated his de.
termination that the Federal pro-
gram shall not entail any tax in.
creaSes in Indiana.
I'VE hope to work out an arrange
ment whereby the state can absorb
the. entire additional 100000 cost
which probably will be necessary"
he said.
No Time for Politics
The scope of the contemplated
social security program covers not
merely old-age pensions, but also
blind aid, aid to crippled children,
child and maternal welfare, and
pubic health.
The only cost to the state in hand
ling the unemployment Insurance.
part of the program is the expense
of administration.
The Governor said he spent 50
much time while in Washington in
conference with social security ON.
Gals and members of the WPA adj
visory board that he had no time
to discuss politics with Senators
Frederick VanNuys and Sherman
Minton.