The Daily Alaska empire., 1941-01-29
Record Length Message Is Delivered Today Be-
 fore Legislature
ABOLISH GOLD TAX
 EXEMPTION. IS PLEA
Need for New Revenues Is Outlined : Armories,
 Buildings Asked

Three basic Territorial taxeS-h personal net income tax, corporation net income tax and general prop erty tax-were called for today by Gov. Ernest Gruening in 16,000 word message delivered to the 18th Territorial Legislature in joint seS- sion In the House Chamber.
 The Governor spoke before an attentive Legislature and gallery which was packed to capacity. with many standees, The message was also broadcast.
 Such taxes are required, the Gov ernor declared, to raise needed reve- nues and to keep an increasing pro- portion of Alaskas wealth in Alas ka for development. progress and improvement. Alaska has enriched the nation. he said, but has done relatively little for itself.
 Two Percent Income Tax
 The personal net income tax sug- gested Is one of two percent. with exemptions of 41.O0O allowed for single persons, $2,Oo0 for married and $400 for each child or dependent. The present $ school tax should Do credited against this new tax. the Governor recommended, so that all would pay $, but those with small earnings would not have to pay both.
 A flat four percent levy is recon- mended for the corporation net in come tax. Present mercantile and professional license taxes would be abolished in consequence.
 The general property tax, for which the Governor mentioned a suggested rate of 10 mills-or one cent on the dollar--would not be in addition to that already paved within incorporated cities, but would collect from those with property not now taxed. The Governor suggests that this property tax. in Its appli- cation to operating properties, should be credit against the gold tax and the pack tax.
 Abolish Gold Exemption
 The Governor recommended abol- ishing exemptions on the gold tax. which he said should be considered and called a severance tax. for the mineral taxed is gone forever from Alaska
 No change in the present three percent rate is recommended This really amounts to about $l on every $35 ounce of gold, the Governor said. and 1t should be paid on every ounce extracted" He estimated that in 1940 more than five million dollars worth Of gold was taken from Alaska on which not one cent of tax was paid.
 Strengthening of the inheritance tax Is also recommended for consid- eration
 Regular departments of the Terri t0rial government show increased re- quirements of about $500 900. he said. while other appropriations should be made for National Guard armories. acquisition by the Museum of the Wickersham Library and at least six Sydney Laurence paintings, tfor man does not live by bread alone'c i. University of Alaska building pro- gram. vocational education and an enlargement of the facilities of the Pioneers Home.
 Armories Asked
 Of his request that the Legislature appropriate $600. 900 for armories, the Governor says the Federal Govern ment, which is spending $25. 900 GOO in Alaska for national defense this year. will not build them and it is "unthinkable that Alaska would not do its part-and do at least part of what the other territories. Ha- waii and Puerto Rico, had done much earlier and on larger scale '
 The Governor also pointed to the need for additional space for Terri toriai offices here. saying that be fore long another building of almost the capacity of the present Federal and Territorial Buildings will be re- auired" and that already half again as much space Is urgently needed
 Of the University, he said this ..un. |