Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-04-02
DR.. Mcdonald to Succeed
Fail on Tax Program
Continued from Page One.>

find if he repeats the sales tax, In
creases the appropriation for schools
and provide additional money with
which to match Federal funds for old
age benefits and unemployment insur-
ance-amounting in all to between
5000, 900 and $50 100000 in new rev.
enue. This means that not only are
McDonald's supporters going to follow
his speech tonight with great deal
of interest, but that his opponents are
going to listen in with just as much
eagnerness, in the hope of finding
flaws which they can use to their adj
vantage.
May Propose Old Plan.
1t is expected that Mcdonald will
propose virtually the same methods of
getting some of this revenue which
he proposed during the 1885 General
Assembly as substitutes for the sales
tax, but which the assembly rejected
overwhelmingly. But these proposals
were designed to provide only about
$12,000,000, while Mcdonald must now
find enough new taxes to raise at
least 25,000,00O, or just double the a
mount he tried to find during the 1885
General Assembly. The three principal
tax plans suggested by Mcdonald in
1885, were as follows:
1. A corporation dividend tax, which
he at first maintained would yield at
least $3,600yO00 a year in revenue, but
which the joint finance committees
finally decided would not yield more
than 100000 a year and finally re-
jected entirely.
2. A revised corporation franchise
tax under which corporations would
be taxed $3.50 per $1,000 of capital
stock, with an added tax of so cents
on the $500 valuation of the property
of corporations, including buildings,
fixtures and stocks. This plan was fl
nally withdrawn, due to the bitter op-
position to the property tax feature,
especially from merchants owning
their own store buildings and stocks,
who would have had to pay this heavy
tax.
8. An occupational tax to be applied
to the gross income of all persons in
the State with a gross income of ST.
900 or more, which would have applied
to farmers, factory and mill employees,
doctors, lawyers, clerks, stenograph-
ers, and others, with no exemptions,
and in addition to the present State
income tax. This plan was also finally
withdrawn because of the tremendous
opposition to it from every side, and
because it was pointed out that this
tax would be worse than the sales tax,
in that the sales tax is applied only
to that portion of persons income
spent in buying goods at retail.
All Proposals Rejected.
The upshot was that, after consider
ing the Mcdonald proposals for sew
eral months, they were first rejected
by the finance committees and later
by the House and Senate as being
more Objectionable than the sales tax,
and the sales tax was readopted for
another two years. It was also fouYid
that these proposals would not have
yielded anywhere near the SIP 900
which Mcdonald claimed they would.
Opponents of Mcdonald are hoping
he will again advocate these same tax
proposals, since they are convinced
they will prove more unpopular with
the public than existing taxes. They
are also anxious to see what addition
al plans he will advocate to raise the
additional $13,0OO,0OO needed.
Will Give Detail Outline.
DR.. Ralph w. Mcdonald will give
detailed outline of his program, es-
pecially with regard to taxation and
new sources of revenue in the State
wide radio speech he will make to-
night from Winston-Salem, the first
he has made during hi scampaign for
the Democratic nomination for gov