The Daily Alaska empire., 1941-03-19
House Passes
 Income Tax
 Bill, 12-4
Reconsideration Motion by Peterson 10 Delay Meas
 ure One More Day

By a vote of twelve to four, the House of Representative Of the l5th Territorial Legislature this after noon passed the income taX Dill which in it's uch-amended form would impose Q tax of from enc and one-half to five percent on person. al net income and flat three per cent on corporation net income.
 Voting against the bill were Reps. James V. Davis, Harvey J Smith, Leo Rogge and Frank Whaley.
 Whaley. in a short statement just before the roll call, said "the un- holy three will have to move over and become the four horsemen,' as he said he would vote against the bill.
 Peterson RecOnsiders
 But all of the original three who opposad the bill throughout its course in the House did not vote against it. Rep Amer J. Peterson of Anchorage voted for the bill and then gave notice of reconsideration.
 Under his reconsideration notice the rules provide that the bill must go over until the following day
 There is considerable doubt about the Senates accepting the bill even after it is finally through the House. Earlier in the session the Senate killed a similar bill by vote of five to three.
 'fWrecking' Denied
 Reresentative Davis, spearhead of opposition to the measure, declared on the floor this afternoon that he resented statements he had wreck ed" the bill. He read from the Gov ernors message to the Legislature that fin order to obviate double taxation, a credit should be given against the Territorial income tax for Federal license taxes paid which accrue to the Territory and from an Alaska Planning Council tax study: The Legislature should be asked to allow the Federal license taxes to be deducted from the tax payable under the proposed income tax law
 Davis attacked the measure as set ting up a bureau and a nuisance He said the bill was one which "the Governor and the experts he has induced to come up here have fram- ed up for us dumb Alaskans" Later he interposed, land there's no fool like an expert
 The Representative said the bill was something that was being crowded on us from the top, and that's not democracy"
 Herbert For Bill
 Taking up the heaviest cudgel in favor of the bill was Rep. Charles Herbert of Fairbanks who declared he expected the bill to bring in roughly $200,000 per year above the acts it would repeal, instead of $109,- GOO as Dr. Alfred Harsch estimated Herbert said he was for the bill primarily because it would tax "the biggest industry in Alaska" the con- struction industry which now goes tax free"
 The Representative declared the bill was "only the first step, and not the final step in overhauling the Alaska tax structure.
 We're going to leave the tax sys- tenn in a muddle, whether we pass this bill or not he said.
 Gcrdon's Estimate
 Rep. Frank Gordon raised Herb ert's ante on estimated revenue from the bill to net $500,00O for the biennium He said those who had amended the bill to make the salmon pack tax count as a credit against the income tax have wrecked the bill to the extent of $250,000p and that in justice similar credit ought to be allowed the mining industry. He observed that those who had amended the bill were particularly