Evening star., 1946-03-10
.Virginians Can Pay
Higher Taxes, Survey
OF Trade Body Says
BY the Associated Press

RICHMOND, Va, Mar. 9.-EStab-
lishment of a sound postwar tax
structure in Virginia is necessary
for the future of the States econo-
my, in the opinion of the Virginia
State Chamber of Commerce which,
through it's committee on taxation
and government, has just completed
an 18 months study of the tax struc-
ture of the State.
In report submitted to the State
chamber the committee, of which
DR.. Robert H, Tucker, dean of
Washington e. Lee University, is
chairman, a program was recon-
mended to provide revenues ade-
quate to finance under efficient ad-
ministration the appropriate activi-
ties of State and local government;
distribute tax burdens equitably.
promote simplicity, certainty, and
economy in tax administration and
compliance, and stimulate rather
than obstruct the effective opera
ton of Virginia's economy.
Need Increased Revenues.
The committee emphasized that
larger tax revenues will be needed
if the public favors increased State
and local expenditures. It pointed
out that Virginians can assume in
creased tax burdens without inter-
fering seriously with the operation
OF the basic economy of private en-
terprise in the State. even though
low taxes may play some role in at
tracing new industry and CONNER
cial development.
AS result Of its research and
study. the committee said it be-
lieved that the Virginia tax system
can be improved in point of equity
by making substantial modifica-
tions in the intangible personal
property tax, modifying or eliminat-
ing the State business license taxes
to the extent that alternate sources
of State revenue can be provided,
repeating the annual franchise tax
on domestic corporations, and pro-
viding for somewhat larger use of
income and death taxes.
The committee recommended i'm
provements in the administration of
State and local property taxes, and
declared that the States postwar
economic development can be fur
thered by simplification of it's
business tax structure, and by max
ing certain that its low tax rates
have not been purchased at the ex-
pense of educational and public
health standards which may be so
low as to injure the States eco
nomic well-being.
Tax Boosts Recommended.
To obtain additional State reve-
nues, should they be required, the
committee recommended increasing
the rates and lowering the exemp-
tions of existing taxes; levying new
taxes and improving State and local
tax administration. It found that
the State, through improved tax ad-
ministration, could obtain $10,000,-
600 in additional revenues without
imposing heavier tax burdens than
are found in the majority of States.
The report revealed that approx
mately $6,250,000 could be raised
through increasing the rates and
lowering the exemptions in the
present individual net income tax;
increasing corporation net income
tax rates; increasing public service
corporation franchise taxes and in
creasing death tax rates. An addi-
tional $500,000 could be realized for
general fund purposes through as
signing the proceeds of the per
cent road tax upon gross receipts
of motor carriers to the general
fund rather than to the highway
fund, the committee found