The Daily Alaska empire., 1945-02-22
Aarsth Again Heard on Net
 IntonlesLevY
Senate Hearing Develops Into Questioning of
 Tax Expert

" CCpOSSQ NeJ lIiCOfilt ldA hCL, yCo-
 erday afternoon developed mainly nto another Senate interrogation of Prof. Alfred Harsch. Occupants pf gallery seats aided and abetted the Sclons in the quiz. Charles Johnston, President of the Alaska Miners Association, also had ! turn on the stand before the Sem lte Committee of the Whole, and J other witnesses were still to be call- ed, when at 5 o'clock, the body arose T 70 report progress" with the under standing that the hearing would be | continued when the Senate goes nto session again Friday morning It 10 o'clock.
 Gonator Frank Gordon, author of Sente Bill No. 12, seemed unable to l1ealize just how well Prof. Harsch was taking care of his end. The Senator insisted on running inter- ference for the witness, providing leading questions whenever the going appeared to be getting tough. i Prof Harsch came up yesterday with some answers differing from J those he gave when he appeared be- { fcre the Senate two weeks ago, and | added some additional information. I That opponents of the bill were bet- ter primed for this second appear ance of the tax consultant soon { became apparent. ' Comes Here On Request
 Senator Allen Shattuck opened the quizzing with question that had brought no response the first time from Prof. Harsch. When asked on who's initiative the tax expert had come to Alaska to pre- pare the proposed bill, whether any member of the Legislature had re- quested his services, Prof Harsch lepl,ed that he had come at the de- sire of Gov Ernest Gruening Sem ator N. R. Walker declared that he had asked the Governor to procure Prof Harsch's services.
 In a preliminary statement, Prof. Harsch stated that in the interval since the bill was framed some me- shanical faults and a few other over
 ights had been uncovered and that
 e is now preparing group of ], mendments9to the measure which gould be introduced during second
 eading.
 Questioning of the tax authority ntered yesterday on a few princi- ] issues regarding the tax mea- Ire: The taxes on gold mines, the .eascnal worker provisions, the eauity of the proposed tax structure, the need for it, the amount of rev. enue to be realized from it and problems of collection and admins eraticn underline law, should it pass.
 More Tax On Gold Mines
 It was brought out that gold mines would have to pay both the present per cent levy on gross in- comes and the new corporation net income tax of per cent. Similar situations would prevail with regard to the salmon industry, where case and trap taxes are retained, and liquor, which is also subject to ex- cises. Prof. Harsch explained that they were the three present princi- pal sources of revenue for the Territory and that it had been thought best not to upset such ma- jor means of financing the Terri l torial Government. Gross taxes on most other businesses are eli.ninat- ed under the act
 Asked by Senator Frank Whaley as to possible discrimination, which \ might result in a Court holding of unconstitutionality, contained in the treatment of seasonal workers by the bill, Prof. Harsch answered that the differential was due to the ap- plication of different methods for collection of the tax from. seasonal workers. He said he knew of no state that had an existing identical statute, but that there is one with a provision very nearly the same, and that the system of using income brackets as units for taxing is not an innovation.
 ], Seasonal Worker
 Referring to the provisions for col lection of the seasonal worker tax from employers, Senator Edward D. Ccffey put a hypothetical case of an owner of a salmon cannery leasing it's operation from year to year to dummy corporations. He asked how in such an instance, where the op- efator, before the due date for the tax, removed all his assets from the Territory, and where. the Outside owner was not engaged in business in Alaska - how could the tax be recovered. Prof. Harsch said such a case would be test of the eff ciency of the administrator of the law; that the bill provides Her on assets and for jeopardy" assess ments which could be collected be- lore the assets, such as packed fish
 ould be removed
 Asked by Senator Shattuck: Isn't taxation predicated on need?", Prof Harsch replied that was matter ol 1 legislative policy; that frequently
 ax systems were overhauled and re- 1eed to improve the structure.
 He elaborated to the effect that
 ability to nauu is the basic nhiioS.