Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1940-12-26
Governor-Ele c t
Broughton Pledged to
These Two Programs
and Legislature Seems
Prepared to Follow
His Lead.
W. ~ JOYNES orFARLAN

Raleigh. Dec. 26.I AP)-UnleSs
the unforeseen happens. you can resi-
assured that North Cardinals sales
tay exemptions will be broadeneo
md d retirement system PROVIDED
for all State employees. including
teachers. when the Legislature meets
next month.
Governor-elect J. Melville Broush-
ION is positively pledged to those Two
things. and indications today were
that the Legislature would support
his program. -
There is much gossip here daily
on the changes to be made on Capt.
tol Hill after Broughton takes otlice
Jan. 8, but it is generally agreed mat
the sales tax will come off OF more
"3rticles of food sold for consumption
in the home" and that Jointly con-
uibutory retirement plan will be SET
up.
The Associated Press learned re-
liablv today that the first appoint
ment likely to be announced by the
new Governor will be the retention
OF Adjt. Gen. J. Van B. Nets IN ms
post 50 that there will be no hitch
in State-Federal cooperation on &C.
tense and draft matters.
Several weeks ago Rroughton an
nounced that Thomas \. Banks. IA
leigh lawyer. would be his private
secretary. and said he did not plan
to make any other appointments I'M
til he had taken office.
II also was learned reliably that
after the reappointment OF AdJt. Ger.
Netts il may be weeks before any
other major appointments are made.
as it is very likely BrOughton will
make none until the Legislature adj
iournS unless an emergency situation:
arises.
There probably will be fewer
changes in the official family" than
most people expect. il was Indicated.
Many have thought that the pledge
OF the incoming Governor to remove
the sales tax from articles sold for
home consumption would mean that
practically everything sold in 4
grocery store would be exempted
from the sales tax but the incoming
Governor made it clear today thai
was not his idea.
Exemptions will be broadened by
naming specific items OF food, which
Broughton emphasized must be those
basic articles which go into the
everyday diet of the average class
family.
Things like green vegetables, rice,
sritS, butter, prureS, potatoes AMI
similar ordinary every day food
articles would be specifically eX-
empted by name under Broughton's
plan but there would be no tax re-
lief for caviar, fancy canned goods,
and the like
The exemption of certain specified
food articles from the sales tax
would cut revenues by perhaps as
much as Sl,500.000 a year. it has been
estimated by competent State au-
thorities, but better business cOndi-
lions would offset the reduction they
figured.
The proposed retirement system,
10 follow recommendations Of Il spe-
cial commission which recently re-
ported, would cost the State a maxi
mum of about 100000 the first
year, and general estimates are that
the actual figure the first year would
be nearer Sl,250,000 to Sl,500,000. A
good share would come from high
way and agriculture funds. for work
erS in those departments.
The Advisory Budget Commission
has finished its report for the new
Legislature.
The document is closely guarded
secret but it is generally believed it
contains. no major taxation changes.
That is in line with the program
OF Governor Hoey and the announced
intentions of Governor-elect Brough-
ton.
When he pledged himself to ex-
emption of foods for home consump-
ton from the sales tax and also en-
pressed himself as favoring d retire
nient system for public employees,
Broughton stressed during his cam
paign that ne thought both could be
done without materially altering the
revenue structure or increasing taxes
on anything else.
The 1889 Legislature passed the
first permanent" or continuing
revenue act in the States history
and the Advisory Budget Commits.
sion is understood to have merely
proposed amendments to simplify adj
ministration and clarity disputed
points.
BroughtCn will be inaugurated
Jan. 9. He will reveal the broad out
line of his program in his inaugural
address that day. Then his budget
message, to be delivered to the Leg
islature Jan. Is or Jan. IA, will 60
into financial details of the changes
lie proposes