The Daily Alaska empire., 1949-01-21
BILL PASSED BY SENATOR'S, VOTE E 13-3
First of Basic Tax Laws 10 Be Retroactive 10
 January 1


 The Net Income Tax Bill, the first of three basic" tax measures that Governor Ernest Gruening has requested of this and several pre- vious Legislatures, was passed by the Senate this forenoon by 13-3 vote It then went to the House, which quickly concurred in minor amendments made in the Senate, and was expected to reach the governors desk by this afternoon. If it does, it will probably become law by tonight.
 A provision of the bill makes the levy retroactive to cover all earn ings of the year 1949 All persons and businesses in the Territory will be subject to the tax, which amounts to 10 per cent of the Fed eral income tax levy. The with holding features of the measure will probably go into effect soon, as soon as the Tax Commission is able to issue rules and regulations.
 The Governor, beaming after pas- sage of the bill by the Senate, ex- pressed himself pleased by the vote for the first basic tax bill to be enacted in Alaska"
 Vote On Hill
 The vote on final passage of the Income Tax Bill in the Senate was:
 Yes Anderson, Barr, Butrovich, Dawes, Engebreth, Huntley, Gar nick, Lyng, McCutcheon. Mac- Kenzie, Nerland, Rivers, Peratro- vich.
 No Collins. Jones, Munz.
 There was little preliminary de- bate upon the Bill Senator Victor c. Rivers made a statement in it's support in which he said that it provides for the most equitable form of tax and is fairer than the sales tax because it levies upon earnings in the Territory. regard less of where they may be spent.
 The basis for judging the readi. ness of a country for self-govern- ment, Senator Rivers said, is often it's ability to raise new tax reven- les. Alaska produces wealth at the rate of sl20000,0OO or more annual ly. the Senator said. but eighty cents out of every dollar of it goes outside and is not plowed back to build the Territory.
 The tax system in Alaska, Sena- tor Rivers said, has been hit or miss-mcstly miss-and the income tax may tend to hold some of the wealth in the country. We must pay our way if we are going to maintain our democratic form of government" Senator Rivers said in closing
 Cut Down Expenses
 Senator E. B. Collins, who has consistently held that the special session is illegal, said that ne would continue to vote mo" on measures that come up for passage during the short session. He said, however, that he agrees with many points made by Senator Rivers and that he would support the income tax measure if it is introduced dur ing the regular session
 On the other hand, Senator Col lins pointed out that the tendency everywhere is to request more and ha we should cut down on govern ment bureaus to the point where they can be maintained without an -xcessive burden cn the taxpayers.
 Mileage Eliminated
 The Senate also passed the pay measure. House Joint Resolution No. 2, this morning, but not until after it had made some amend ments, jockeyed around at consid- erable length on the proper man. ner in which amendments should 3e made, and knocked $l5,0OO off the appropriation. The vote on pas sage was 14-2.
 Senate President Frank Peratro- yich ruled that committee amend ments to the measure should be read at the time sections to which they applied were reached during the second reading of the bill. There was an objection to this pro- cedure by Senator Rivers but the Rules Committee upheld the rul- ing of the chair