The Wilmington morning star., 1941-02-11
Provides for Raising of $780,
100000 During the States
Next Biennium
BY CHARLES W. DANIEL


RALEIGH, Feb. 1O.-tREThe
1941 state revenue bill, providing
for the raising of an anticipated
$162, 600, 900 in the next biennium,
reached the floor of the house
tonight after winning unanimous
approval in the joint finance COM
mittee his afternoon. The bill was
reported favorably in less than. five
weeks after the committee beg an
its deliberations, thus setting what
members said was an all time
speed record for the revenue meas
ure.
The. quick report of the bill was
seen as a comeback victory for
Governor Broughton when the COM
mittee reversed its stand, taken
last week, and brushed all the
sales tax crumbs off the home
table. This was in keeping with
the Governors platform pledge to
remove the sales tax from all foods
for home consumption.
The committee last week had
refused to accept an administration
amendment for blanket exemp-
ton of foods but reversed its posi-
ton today in a voice vote 82-2.
when a subcommittee detailed to
study the whole sales tax question
recommended adoption Of the total
exemption.
Only dissenting votes on the sales
tax issue were cast by represe nta-
tive Umstead Of Orange and sena-
tor White Of Manson. Umstead pre-
viously had listed these two rea-
sons for voting against the exemp-
tons:
lit is taking things out Of the
tax that the average working nan
would never pay for because he
doesn't have the money.
2-It would be taking from the
sales tax, which is the backbone
of support for the schools, money
that the schools deserve.
The committee also settled
"Once and for all'' some mem
bers said-the issue of division OF
intangible taxes between the coun-
ty and state, voting overwhelming
ly to increase the counties share
from the present 60 per cent to
rs per cent.
The loss in revenue to the state
by virtue of the IS percent in
tangibles reduction will amount to
$250,000 yearly on the basis OF
source in the next biennium, rev.
enue Commissioner A. j. Max
well told the committee.
Representative Cherry Of CASTOR
read figures showing the counties
share of intangibles in the last
fiscal year totaled $87, 592.33.
Leading the fight against the
proposed ratio change were Sena-
tors Gray of Forsyth, Ballentine
of Wake, and Gay of Northampton,
and Representatives Underwood Of
Hertford, Arch T. Allen of Wake,
Uzzell of Rowan, and Ward Of
Craven.
Gray, declaring that Forsyth and
six other ''big tax paying" counties
stood to benefit most by an in
crease in the counties share in
intangibles, declared that selfish
ly'' he would ask for the increase,
but II hate to see the state serv-
ices crippled" The Forsyth sena-
tor added that Neither, hell, nor
snow nor sleet nor the darkness
Of night" can keep county repre-
sentatives from coming back in
two or four years and demanding
further increases"
Senator O'Berry of Wayne, an
swering Gray's contention, drew
this analogy in discounting the lat
ter's proposal Of a 65-35 "com-
promise" amendment:
Suppose my wife and 1 dis
agree about going to reception.
She wants to 60. I don't. We COM
promise, and, of course, we CO."
Gray later, at the request of
several committee members, with
drew his substitute 65-35 amend
ment which would have cut down
the counties rs per cent share
proposed in amendment by repre-
sentative Jarvis of Buncombe who
with O'Berry, Senator Brooks of
Durham and Representatives Rabb
of Mcdowell s1d Cook of Cumber-
land led the debate for county in
crease.
Representative Allen observed
that the Jarvis amendment would
take from the state $780, year
Just about enough to operate
a 18th grade in the schools for the
first year,
In debate of the sales tax ques-
ton Jarvis had taken exception to
a statement by Representative
Alternately of Nash comdemning
the sales tax as 'damnable;;"
Il don't believe the people of
North Carolina are against the
sales tax. I know our people in