The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-01-16
public Works Administration Cut One Fifth
PROPOSAL TO RAISE INCOME
TAX AND ABOLISH SALESTAX
is HEARD BY COMMITTEE
Maxwell Advises Serious
Consideration for Such
a Program


to raise the income tax rate and to
abolish the 3 per cent sales tax
were heard before finance COM
mittees of the general assembly in
joint session yesterday.
Representative Lumpkin Of
Franklin, pointed to an amend
mcnt passed in November, allow
ing maximum income tax rates of
10 per cent, and asked for an i'm
mediate increase. Lumpkin pro-
posed rates as follows: incomes Of
$4,000 to $4,000, 4 to 5 per cent;
$4,000 to $4,000, 6 per cent; $4,000
to $4,000, 7 per cent; $4,000 to
$4,000, 8 per cent; $4,000 to
$4,000, 9 per cent; and SO per
cent above $4,000.
A. j. Maxwell. commissioner of
revenue, advised serious consid-
Grafton of increasing income tax
rates, and pointed out that North
Carolina rates are already higher
than many states, and much high
CT than adjoining states.
Willard l.. Dowell, executive
secretary of the State Merchants
association, said between $50,000,-
600 and $100,000,000 was spent
outside the state by North Caro-
linians on account Of the sales tax.
He declared that the measure was
originally passed as an emergency
and was no longer necessary since
the emergency had passed.
He urged elimination of the en-
tire tax, but said he favored q 2
per cent flat tax rather than the
elimination of the 3 per cent tax
from necessities of life. He de-
clared that merchants, consumers
and the state would profit more
from the 2 per cent measure.
The joint legislative committee
on appropriations heard requests
for allottments for six state de-
partments Of $130,651, more than
was recommended by the advisory
budget commission.
The largest increase was asked
for vocational education decision
of the department of public in
struction and was $95,S00 Clyde
A. Erwin, superintendent, also
sought ar increase of $20,450 for
the administrative division of the
department.
The governors office figure of
$27,743 for each year of the BIZ
ennium was adopted without COM
ment as were recommendations
for $35,55S and $41,15S for the
budget bureau for the two years.
Attorney General A.A.F. Sea-
we'll asked for an increase of
$4,000 to provide another assistant
in the department, and pointed out
that no other attorney generals
office in the nation was handling
as much business wit has small a
staff.
Secretary of State Thad Eure
asked for q Subcommittee to de-
termine the amount to be spent in
binding the land grant books in his
office.
w. J. Spain, assistant director of
the department of revenue said he
might desire to be heard later on
possible changes for the depart
ment.
Salary increases and two addi-
tional employees were requested by
the N. C. historical commission.
The increase sought was $500
each year.
The state Librarian asked an in
crease Of $3.50 over the allotment
for the first year and $3.50 over
the second. She also asked for an
increase for the state library COM
mission. of which she is chairman.
A bill asking for a bond issue
Of 100000 to finance construc-
ton of state orphanage was in
troduced in the house by Repre-
sentative Dellinger Of CASTOR.