Milford chronicle., 1939-02-03
STATE FINANCES
DEMAND STRICT
ECONOMY NOW
Continued from First Pags)

be required to report the income, /
any, of the dependent persons who's
support forms the basis for claim TO
exemption.
Bad Debt Limit
Limit the time when deduction fO
a bad debt may be claimed to thu
year in which the debt was deter
mined to be wholly worthless and NJ
portion recoverable.
Provide that information be re
quired from employers and other:
for payments of salaries, earnings
or payments of 800 or more annu
ally. in place of the present require.
ments for reporting such payments
of $1,000 or more.
Enact legislation enabling this
State to gain the benefits of any re-
ciprocal federal legislation permit
ting taxation of U. S. government
salaries and bond interest.
Unemployment Strain
Unemployment, Mr.. Truss declar-
cd, has placed the greatest single
strain upon state finances" Busi-
ness is optimistic that it may be re-
duced. but too great reliance should
not be placed on this attitude in
view of the magnitude of the unem-
ployment problem and the compare
lively limited means of industrial
absorption in Delaware"
The commissioner reported total
tax receipts of s5,264,316.77 for the
year ended October 81, 1888. gain
of l7.S per cent or 579S.953.04 over
the preceding year.
Sixteen changes i'm three tax laws
were asked in the survey giving a
detailed analysis of strengths and
weaknesses of the States tax struc-
ture.
Dangers TO Meeting Expenses
Mr.. Truss listed four factors that
"imminently endanger our ability TO
meet our expenses from present tax
sources:
Loss of corporate revenue
through decrease in the char
ters granted.
Threat to the franchise rev.
enue in proposals for federal Ii
censinG of corporations.
Federal encrOachments upon
long-standing state sources.
such as death taxes.
Reduction in the amount of
State income taxes through the
increasing federal rates.
Major Income Sources
Major sources of State income. he
said. were:
Income taxes: $1,29S, 1882. a de-
cline of 1873 per cent or $l90,955.13.
Franchise taxes: $3.264.436.3S. an
increase of 30.3 per cent or $780,
22O.2S.
Estate taxes: s5OS, ,469. an increase
of 1887 per cent or $295, 5,627,86.
Business licenses: slS6,656.S6. a
decline of IA per cent or $7,866.46
from 1927 revenues.
TaXables Increase
Other highlishts of his exhaustive
report included:
New Castle cOuntians paid per
capita tax of $10.62; Kent cOuntians
of $l.76. and Sussex cOuntians of
$1.44.
Altogether in 1888. some type of
tax was paid by 1858 persons in
Delaware. against 44.404 in 1897. ,
One person in every rs in Kent
county receives an income above the
exemption allowed.
Sussex county with l.1S5 taxable
incomes among 29,S88 persons over
81 had slightly less per capita with
taxable incomes.
Only 151 incomes from farms in
al
Wilmington with a population over
81 of 74.173 reported 1874 taxable
incomes. or one person in seven
contributed to the upkeep of schools
through a direct tax on incomes. !
$94,GOI,716 Paid In Taxes
Exclusive of hidden levies. total
taxes paid in Delaware to State.
federal. county. special district, and
municipal government were $94,601,-
716 in the fiscal year ended June
80. 1888. with 877 per cent going to
the federal government, and 1913
per cent or $1O,21S,OOO to the State.
Further. the report said. 54.930
persons are partially or fully main
tanned at State expense. including
college and public school students.
relief. and inmates of institutions.
Law Change Asked
Mr. Truss submitted nine recon-
nCndatiOns to make changes in the
income tax law, four in the estate
or inheritance tax, and three re-
sarding business Or occupational
licenses. Bills to carry them out are
to be presented to the General AS
sembly.
Other recommendation for the
enactment or revision of minor
points in the present income tax law
are suggested to:
Reyise the definition of taxable
as it affects fiduciaries. excluding
beyond any doubt the possibility Of
its application to income of trusts
which are distributed or distribut-
able to nonresident beneficiaries.
Amend the law at Section 1858.
Revised Code of 1885 which now
provides that all personal property
shall be liable to taxation and as
sessmeDt for public purposes. but
makes numerous exceptions to the
tax on such property. The result
Is that the only personal property