The Waterbury Democrat., 1936-10-23
President May Annex LndianaB ByLaborVote
Lyle C. Wilson, Special Political Writer for United Press, Democrat, Believes Roosevelt Will Win State

NOUSGVGlI VIII VIII OtdtC living and taxes are going up faster than the working mans income.
 Indiana Not Sighted
 The Roosevelt administration has not sighted Indiana in distribut- ing federal funds. In three Roose- welt years, the state has received $227, ,395, ,627 in grants and the ag- gregate of federal loans closed and insured in Indiana is $264, ,169, ,764. In those years the federal government collected $181 ,12l, ,105 in taxes in this state.
 Small business men, particularly those in smaller communities, ap- parently are in angry opposition to the tax system imposed by Gov. McNutt. It is gross income tax, according to its sponsors. Manu- lecturers and wholesalers pay one and one-quarter per cent on their gross take. Retailers, professional men and women and all others with income pay 1 per cent. There is a $1,000 exemption. Republicans charge that the tax in application has become a sales tax in many in- stances although democrats deny that charge. At republican head quarters I was shown a French Lick Springs hotel bill. It was for $6 and added to it was six cents with the notation, Indiana Sales Tax"
 Tom Taggart In It
 The French Lick hotel belongs to Thomas Taggart, democratic nation- al committeeman for Indiana, and republicans argued that the demo- cratic committeeman's judgment of what the McNutt tax actually is should be accepted. Republicans promise to repeal the gross income tax and to substitute a graduated net income tax.
 Commerce department reports fix the net profit of all grocers at 4.6 per cent. Republicans argue that the 1 per cent gross levy on a small grocer'S annual take is, in ef- feet, 25 per cent tax on his net income.
 That issue may hurt the demo- cratic state ticket which is weaker now than in 1882 because hand- some Paul McNutt is not permitted by Indiana law to succeed himself as governor. Also used against him and his party this year is the charge that he is taxing state employees for political machine upkeep. McNutt freely admitted that to me. The levy is taken by the Hoosier Demo cratic Club, known locally as the job holders.
 Tt really isn't per cent" Nc Mutt told me. Tt is graduated ana averages nearer per cent. l make $8,OOO a year and pay $l2 8 month. A political machine does not run on air and who should pay for it II not the persons who have jobs|
 McNutt Accused
 McNutt estimated the levy raises about $90O00 year and at repuo- lican headquarters was told It was about $100,O00. Republicans assert further. that McNutt levies on con- tractors and firms supplying ma terial to the state. l asked the gov ernor about that. ,,,
 "Contractors are not solicited, ne said. If they wish to contribute they may" :. .. to
 Al democratic poll purporting to have been a house-to-house canvass of all voters was presented to me as showing a Roosevelt majority oi 193 ,OOO, but less partial observers suggested 8 house-to-house com plete canvass was not possible Democrats bit into Indiana in l9SU and won the state by 50,0O0. Tn 1892 MT. Roosevelt had 8 plurality or l84. .O00 votes and two years ago m a senatorial election the democra'- ic margin was 60,0OO.
 Elkhart county, a republican stronghold. may be typical of the Condition in other parts of Indiana. The democratic poll showed a sllg.it democratic majority but indicated approximately 5000 voters were un. . decided. They will determine the winner there. .r
 Tn republican Delaware county inc Muncie Evening Press distrin- ,,tsd I ballots to 19,O00 subscriber and received 2,845 replies giving MT. Roosevelt 1852 and Gov. Lanooi' 1,213 votes.