The Daily Alaska empire., 1947-01-30
Balance Budget, Double
 lFeis' Tax Is Suggested by
 Governor, Message Today

legislators themselves, is how this result is to be achieved
 The Territorial Guards. for which a budget item of $73,00o was sub mitted, can not be dispensed with, the governor said. T consider that the equipment and rifles are not worth the cost of crating, assembling and shipping to tke nearest Army posts, and they should be left in the communities where they are now located he told the legislators.
 Reduce Tax Payments
 The employers of the Territory can be saved approximately a mil lion dollars a year by reducing their taxation rates for unemploy- ment insurance, the Governor said
 He said that the unemployment fund amounted to $9,l94,775 on December 3l, l946, and that in his judgment this is sufficient to meet the worst kind of period of unem- ployment in the Territory.
 While equal or blanket reduc- tions in contributions to all en- ployers cannot be made under the Federal Unemployment Act, the Governor said, the legislature can amend the Alaska Act by insert ing in 1t so-called employers experience rating provision This. he said, will permit reduction in the rate of contributions for employers who have been subject to the provisions or the Act
 In order to raise revenues for the huge budget submitted this year, the Governor suggested that a portion of what he said is eight million dollars year saved by not having a l00 percent increase in freight rates could be garnered in the form of taxes.
 Many Pay No Taxes
 Businesses which pay little or 1 nothing to the Territory in taxes were listed by the Governor as including steamship companies, air. plane companies, lighterage com paniss, banks, oil companies, radio stations. newspapers, logging opera tiens, automotive and marine re- pair shops, dry cleaners and press CTS and theatres. These examples, he said, could be multiplied
 A breakdown of the anticipated revenue for the next year. he said. i indicates that the salmon industry is the largest taxpayer with $5l4,- coo or 3290 percent Of the total. Next is the liquor tax, amounting to half million dollars, a percen- tage Of 3207
 Five activities-salmon liquor. motor fuel oil mining and automo- hi,a licenses, yield 87.75 percent of the total tax revenues. the Gov eTnoi stated.
 Mere Veterans Tax
 The Governor commended the legislators who last year passed the i Veterans Loan Act He indicated, however, that the Act did not go far enough.
 i Some 6700 Alaska veterans will be eligible for the benefits under the Act, according to Selective Ser vice figures, the governor said. On January 20. he reported, there were pending 353 loan applications to- taling about two and half mil lion dollars, and 664 bonus appli- cations for a quarter of a million dollars-a total of two and three quarters millions.
 ! If one may judge by the figures on hand at present" the Governor continued. the rate of income in to the revolving fund should he at least doubled and the tax continued until such time as the total fund reaches, not three and quarter million, but perhaps ten million dollars
 The Governor reviewed the needs of the Welfare. Education and Health Departments, the need for more roads and airports, and sug- gested the desirability of a retire ment provision for Territorial em- ployees.
 i In opening his message this af- ternoon, the Governor saluted Sen ator E. E. Collins of Fairbanks and Senator Charles D. Jones of Nome, who were representatives in the first Territorial Legislature in 1913. Tt would be fitting climax to their long span of service to the Territory, if they who had served in the first Territorial Legislature could likewise serve in the first State Legislature in Alaska" the Governor said.