Imperial Valley press., 1939-01-23
SeIf-HeIp Relief
Plans ignored il,
Finance MESSAGE
Continued from Page u

Anderson had talked of a possible
Sl5,O0O.O0O fund for experimental
ton with putting the needy to work
to help themselves, but Olson not
ed only that the $73 $50, 900 was the
amount the State Relief Commits
sion estimated would be required
to carry on cash dole relief of the
scope provided during the previous
biennium.'
The governor went on to say
California should not continue
cash doles to employable citizens,
but as rapidly as sound planning
will permit we should inaugurate
works program of self employ
ment under competent superviS-
! ion
OlSon's recommendations regard
ing taxation included an increase
in tax on net incomes over $4,000;
boost of one per cent in the fran
chise tax rate; severance tax on
petroleum; slight increase in tax
on inheritances over S25 900, and
levying of a gift tax with rates and
exemptions paralleling the inheri-
tance tax; increase in the states
take on racetrack betting, and a
heavy boost in alcoholic beverage
| levieS.
The income tax schedules re-
main the same for the 1000 81 900
and $4,000 net taxable income
brackets, at l per cent. The pres
ent rate of per cent on $4,000 and
$1,000 is raised to 2 per cent. The
rate would be increased from the
present per cent to per cent
from $4,000 to $4,000 inclusive: 2
to 4 per cent on $4,000 and S10,-
900; 3 to 4 per cent on S1l 1000; 3 to
5 per cent on $4,000 to $4,000 in
elusive; 3 to per cent on $4,000
to $4,000; 4 to 6 per cent, $4,000
to $4,000; 5 to per cent, $25,-
600 to S29 900; to per cent $780,
00c to 500 900; and to per cent
up to S50000.
Above net income of $4,000 pres
ent rates ranging from to Is per
cent would be unchanged.
The estimated increased revenue
was listed by Olson as follows:
Personal income tax:
l. Adjustments with respect to
deductions, wash sales, contribu-
tions. trust income and basis OF
property, S5,650000; slight increase
on net incomes of $4,000 after al
lowance of personal exemption and
credit for dependents, S7,450,000
2. Bank and corporation fran
chiSe tax adjustments with
respect to deductions, wash sales.
contributions and affiliated cor
porations, $7650,000; increase rate
on corporations from 4 per cent
to 5 per cent and the maximum
on banks from 8 to per cent.
S9,950,000.
B. Severance tax tax on sew
erance of petroleum, natural gas
and natural gasoline at rates ap-
proximating 2 per cent of value
of production, s12,000000.
q. Inheritance tax adjust
rate structure to provide for slight
| increases in rates on inheritances
over s25000 of direct descendants
and on all inheritances of others
in excess of existing exemptions.
| SO 1000 900.
D. Gift tax provide for tax
on gifts with rates and eXemp-
tions paralleling inheritance tax,
100000.
6. Alcoholic beverage taxes =
increase tax on distilled spirits
from 30 cents to ST per gallon,
S4,O0OOOO increase beer tax from
two to five cents per gallon, 81
100000; increase following license
fees: distilled spirits manufacture
ers' agents, rectifiers, distilled spir-
its wholesalers, from $3.50 to $3.50:
beer and wine wholesalers from
$50 to $3.50; off sale beer and wine
from $40 to $50, $65O0
T. Pari-mutuel horse racing fees
increase state license fee for
race tracks from present flat rate
OF 4 per cent of the money wag-
cred to a graduated percentage.
ranging from to per cent. de-
pending upon the amount of money
handled, 100000
O. State park maintainence and
acquisition fund (oil royalties) =
return to the general fund ex-
cess Oil royalties in this fund over
ana above current budgetary needs
OF the state park system. $3.50 900
The governor submitted the fol-
lowing summary of the budget:
constitutional and statutory fixed
charges 1854 ,572.
Recommended appropriations SUBJ
lect TO executive control $2O2. .749.-
1888.
Total estimated expenditures $751;
1853 .355.
Estimated receipts from taxes and
other revenue:
Sources now in force $525. 1873. .764
prospective deficiency for 1899
Al, s31 1863 ,591.
Estimated accumulated deficit as
Of June 80, 1899, S44. .746 925
prospective accumulated deficit
as of June 80, l941:
Without provision for addition
revenues S76,323,553.
Estimated additional general fund
revenues $63,900 900.
! Resultant accumulated general
fund deficit estimated to remain
as of June 80, 194l, $12,428,553.
One Of the principal causes for
The increased total Of the hldpet