The Wilmington morning star., 1947-11-05
SALES TAX
Continued From Page One)

- .
or the sales tax was evoked by
a question from a listener dur
ing forum session following his
speech, in which the questioner
asked what could be done about
huge profits being made by re-
tail establishments on the sales
tax collections.
"There isn't anything you can
do about it," Johnson declared.
Every frankly, I don't think it
will ever be repealed"
He explained the need for the
sales tax saying that it brings
in revenue of $3O,O00,OOo an
nually and adding, "They're
calling for more money in
schools and in everything"
In discussing the States fl
nancial structure, the treasurer
explained that North Carolina is
now on a "pay as you go'' basis
and declared, "We won't ever
have to issue any more bonds
in North Carolina"
Pointing out that North Caro-
lina's general fund depends on
fluctuating sources for revenue,
he said that in 1910 some SAL
100000 was collected, as COM
pared with an income of $l17,-
100000 in the last fiscal year.
"Sooner or later it's going to
turn back the other way" he
said, "but I think it will settle
down at around $75,000,000 or
$50, ,oOO, ,OOO."
Members of the last legisla-
ture set aside $51, 100000 in
a sinking fund to iquidate the
North Carolina general fund
debt, he explained, adding that
'now for all practical purposes
for the first time in 100 years
we have no general fund
debt"
Another $5o,oOo,ooo was set
aside for a building fund, ''for
which there was a very, very
great need in North Carolina"
he stated. "We have had people
who were insane in Jail for two
nanths because there was no
room in the State hospital" he
added as one point in explana-
ton of the building need for
State institutions.
The $30,000,00O set aside by
the General Assembly as a post
war reserve fund serves to pro-
tect the increases in salaries
granted State employees and
teachers when schools budget
for the current year and next
year were set at $64, 1000, 900
Johnson explained. The previ-
Gus years schools budget wss
$47, 100, 900.
''North Carolina is the only
state maintaining nine months
school in a 12-year program
solely from State funds" John
son said, adding that some mu-
inequalities may go beyond that
with local funds. He stressed the
fact that a child in the poorer
sections is given the same edu-
cational facilities as one in the
richer cities.
In other states, he said, city
schools are the finest, but rural
and poorer areas must look out
for themselves.
Discussing the State Highway
fund, which is separate from
the general fund, Johnson said
that there is now 100000 in
the fund, more than is neces-
sary to liquidate the highway
debt. Although under normal
conditions there would be no
surplus IN this fund. a $50. .000,-
600 surplus was piled up during
the war years when new con-
struction was impossible, he
said.
"The remaining $25, 1000, 600 is
now being spent as fast as pos
sible," Johnson said. "In 1851
all highway debt principals will
be paid and a sinking fund suf-
ficient to retire those comi n g
due after that will be maintain
ed"
According to it's treasurer,
"North Carolina is the only
state in the union which main
tains and constructs all roads. :"
In other states county roads, or
local roads, are maintained by
counties with the result that fine
roads are found in richer areas
and near the cities, but the poor
er sections find themselves I'm
able to support decent roads.
| Prior to Johnson's address,
the Jaycees' discussed plans for
their proposed new membership
roundup during the month OF
November, which was painted
las "the biggest in history"