Milford chronicle., 1942-01-09
Auto Ban Will Tire Rationingg g
Upset State Boards Named
Tax Program In Delaware
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State Tax Commissioner james
p Truss. commenting only briefly
said his office was studying tn,
situation and attempting to revis,
the states fiscal system so thai
there would be no serious disrup-
ton.
Big job At Hand
Since the budget for the current
biennial period has already been
set up, the job will be big one
it was conceded.
America at war, it was admitted,
will undoubtedly have effect on
state revenues other than through
the automobile industry and steps
must be taken to offset any dam
aging results.
This problem will be up to the
General Assembly to overcome
when it convenes January, 1943, it
was stated. Whatever revisions are
necessary i'm the states financial
laws will be enacted by that Legis-
lature.
flTSL WAR NO IdtttEH
World War l offers no pattern
to follow in overcoming loss of the
gasoline tax-there was no such
tax in 1917-1S. However, last years
income of $2.46S.2O0 was $24O.30O
over the previous fiscal period and
an increase was anticipated for the
next two years.
During the First World War au-
tOmobile registration turned $685.
400 into the state. far below the
$1,1S40 for the last fiscal year,
and $1,113,200 for the year ending
June 30, 1910.
Income Taxes TO Drop
State income taxes, due to heavy
federal income taxes, are expected
10 show a serious drop. In addi-
tion, if any upper limit of income
is enacted by the federal govern
ment and it would receive every
thing beyond that point, it would
create a serious blow to the states
revenue, it is pointed out.
Revenue from mercantile taxes is
likely to suffer because of the in /
ability of small businesses to con-
tinue in the face of rationing, price |
veilings and other restrictions.
Revenue from contractors Ii /
censes is expected to be reduced due
to priorities.
Revenue from franchise taxes
and new corporations may drop,
because confiscation of
assets of companies operating in
countries.
The inheritance tax revenue also .
appears doomed to suffer due to
the rate of federal gift and estate
taxes and the dimnuation in the /
size of estates resulting therefrom. !
Economy Necessary
The present state tax system was
ON a peace-time basis.
But, with the necessity of going all
out to gain victory. the State Tax
Department will give its best
thought to operating the state on
as economical a basis and with as
light a burden as possible on the
taxpayers.
1T is natural that Delaware's
revenues. as well as those of other
states. must suffer. from the war;"
Mr.. Truss commented. However.
the state. as well as all of our
citizens. must be prepared to make
extreme sacrifices to insure the
liberties which have been handed !
down to us through the years" /!
In connection with the job loss /
and restricted sale of new vehicles.
an annual payroll and tax return in
Delaware of at least $500,000 will
These estimates were corroborat-
ed by Hugh F. Gallagher. president
Of the Delaware Motor Trades As
sociation, who said that although it
was only possible TO reach a rough
In addition. hundreds of Della
$4,000 motorists may be
forced to give up their private au-
by government requisi-
ion.
Besides the automobile and tire
salesmen and their representative
firms in the state, those affected by
ne wartime economy move were
finance companies, loan firms, ac-
cessory stores and service stations:
Even Repair Work Drops
Automobile firms are continuing
10 do repair and maintenance work
(which has already decreased be-
cause the public is warned against .
use of motor vehicles"
Many employees of tire stores,
where other products are not car
led for sale, must lose their jobs i
as result of the crisis. Tire deal
ars estimate more than a dozen I
salesmen will be dismissed !
Service stations have not felt the !
economic tOOthache yet. according
% John b. Reynolds, president of !
he Retail Gas Dealers Association.
Repair and maintenance work has
and car owners are TAX '
ng much better care Of their We