The Daily Alaska empire., 1946-04-11
SALES TAX IS REALLY GROSS INCOMES LEVY
Rivers Says New Veterans ACt Is Misndmed-Ex-
 plains 10 {. of (.

1 Despite initial confusion on the
 issue, the recently passed tax bill on gross income is neither insur-
 mountable in administration nor negotiable in application" Attor- ney General Ralph Rivers told
 members of the Juneau Chamber of Commerce this noon at the organi- zation's regular luncheon-meeting in the Baranof Gold Room. In an introductory talk preced- ing open forum discussion of the tax issue, Attorney Rivers said
 that much of the confusion in un- derstanding the tax bill was due
 to early publication of the bill as a Sales Tax.
 Tax On Gross Income Actually" he said, it is more clearly defined as a bill establish ing tax on gross income derived from all businesses conducted in the Territory. It includes tax on sales, services, and exporting, with one percent collectable on all sales
 and services in excess of $100 dur ing any one quarter, and one-half percent on wholesale deals and ex- ports. The main exception in tax able income is that of salaries. The
 bill specifically eliminates tax against wages paid to an employee by an employer
 1: Services, the speaker explained, includes such service as that rem dered by a carpenter, plumber, doc
 tor, lawyer, etc. There is nothing
 in the bill excepting municipal , corporations from tax responsibili-, and therefore all monies collected 1 by companies for abstract commod-
 ities such as electricity and tele-
 phone service is likewise taxable.
 Tax on these services and on sales , of tangible commodities may be passed on or absorbed by the busi-
 ness man as he sees fit.
 Cannot Be Hidden l Since price levels on items sold under OPA ceilings cannot be rais-
 ed, taxes on these items cannot be hidden" but may be marked up on
 sale slips and books as separate entity from the cost and the two I added together as the ultimate ! price paid by the consumer. In cases where sale prices are , not regulated by OPA. new price
 may be set on merchandise and the
 sales tax covered in this way. OPA does not regulate prices on maga-
 zines, books, or any periodicals
 containing editorial matter, MT. 1; Rivers said. In a number of cases i prices on such reading material {! have already gone up as high as ! five cents.
 When the purchase price of an
 article is less than 50 cents and
 therefore not taxable as high as a
 penny, MT. Rivers said the fol-
 lowing policy, endorsed by OPA,
 may be followed:
 1 An article ranging in price from l 49 cents to $1.50 may be taxed one
 penny. If the price is less than 49 cents there is nothing for the deal CT to do but absorb the tax him. 1 self. This should rot amount to a 1 burden, however, said Rivers, since
 on many other sales such as 50-
 cent ones he should be able to make up the difference in tax re- ! turns.
 Commences April
 The tax bill, signed by Governor i Gruening on April 3, covers only ! income from April 4th inclusive No
 time limit has been set on the tax. ! It will end at the close of the quarter in which collection goal i of $3,500,0O0 is reached. It is pos i sible, he said, that this goal may be reached in the middle or some
 other period of quarter. In that 1 case, the tax will continue to be i (Continued on Page Fight