The Daily Alaska empire., 1946-03-08
Controversial veis Measure
 BeioreSenaie
Loan Bonus Bill Calls for Gross Sales Tax 10 Cre-
 ate Revolving Fund

ate Revolving Fund
 What has been softly heralded as the pivotal bill of this special ses- sion was laid before the Senate yes- terday afternoon by it's Committee on Education, Public Health and Morals = now doubling in Veterans Affairs.
 l Dubbing itself the Alaska World War II Veterans Act" the measure, Senate Bill No. g, offers honorably discharged vets a choice of loans or cash bonus from a $3.000,000 revolving fund to be derived from a gross sales and service tax. 1 This bill, proposing sales tax, was introduced as a committee measure hardly before echoes of Gov. Ernest Gruening's message to the legislators had died out - the message in which the Governor de- cried a sales tax as @ means of raising revenue in support of vet erans or health legislation.
 s. B. 9 creates five-member Alaska World War II Veterans Board" to set policies to be execut- ed through a fuil-time Veterans Loan Commission" who shall be paid not more than $8,00O per year.
 Three classes T. loans are provid- ed:
 1-Personal or educational loans on promissory notes, secured to the extent of security available, up to $5 5,00o.
 i 2-Home or farm loans up to $10,0Oo, secured by 80 percent mort gages.
 3-Business loans up to $20000, secured in same manner as home loans.
 A vet maye be eligible for more than one type of loan at one time, provided all loans to him do not aggregate more than $20,000. Upon repayment of a loan, a borrower is eligible for new one.
 Special LeUy
 A special levy is proposed, to be known as the World War II Veter- ans Tax on gross sales and remun- eration for services.
 Proceeds of the tax are to be devoted to the purposes of the bill and it is provided that the levy shall terminate at the end of the quarter in which the revolving fund is built up to S3,000,0o0 Tax inn posed is one percent on gross re- ttail sales and upon remuneration flor personal services, excepting sal aries, wages or gross incomes to in dividuals of $l00 or less. Tax upon gross wholesale sales is one-halt of one percent. Monetary and crim- inal penalties for non-payment are imposed, with prior lien for col~ lection.
 I As an alternative to loan, a veteran may elect to receive a cash bonus totaling Sl5 for each month served in the armed forces. A vet eran would not be qualified for both loan and bonus. Benefits of the bill are extended to survivors of a deceased Alaska veteran.
 Finally, the measure appropriates $250,000 to open the Veterans re- volving fund and for administrative expenses, to be repaid into the Gen. eral Fund from the proceeds of the tax. The Department of Taxation is charged with collection of the tax. The bill contains the usual emergency cause to make it ef- fective immediately upon passage and approval. The bill was referred , to the Taxation Committee. Other Bills One other new measure, S.B. g. also by the Education Committee was introduced at yesterday after noon's session, and S. B. No. 10, by Senator N R. Walker, came in al this mornings brief meeting of the body.
 S.B. 10 would make it unlawful for checks or other negotiable in struments to be cashed in liquor es- tablishments. It was referred tc the Judiciary Committee.
 Senate Bill is the anticipated measure asking an additional ap- propriation of $250,000 to the Terri torial Department of Health fol , control of Tuberculosis. The Com mittee of the Whole Senate yes terday heard pr. c. Earl Albrecht Health Commission, and Dr. Dwight Cramer, Ketchikan Health Boarc Member, testify in support of the bill. Dr. Albrecht read 30-pagt statement which summarized argu. ments he has put before various :. groups throughout the Territory I during the past five months 1T sr.t