The Wrangell sentinel., 1949-01-14
GOVERNOR DELIVERS
 MESSAGE TO LEGISLATURE;
 ASKS TAX LEGISLATION

five previous occasions, Gov. Ern- est Gruening in his sixth message to an Alaskan Legislature this week recommended to the extra ordinary session basic tax legisla- tion Specifically, he asked for a graduated net income tax, corpot- ate and individual; a property tax and an equitable trade license tax.
 The Governor brought to the attention of the lawmakers that at years end the Territory's gen. eral fund had a balance of S6 6- 2S950 and that there are some TOO claims against the Territory totaling S758,209.59 which must be paid.
 "The accounts which the Ter ritory is unable to pay because of lack of revenue cover wide range of personal services and governmental activities,' the Chief Executive said. There are un- paid bills for clothing and shoes for dependent children, for food for welfare cases, for school and office supplies, and for school bus transportation. The claims include those of hospitals and funeral parlors and truly cover the whole field of Territorial responsibility from the cradle to the grave. To- tai school refunds owed to in- corporated cities and independent school districts approach half a million dollars. The University has been kept open because of voluntary loans, repayment of which is a pending obligation. Amounts owed hospitals private individuals and sanatoria for tub erculosis care exceed $33,000. Most of this is owed to institutions in Alaska the Seward tuberculosis sanitorium alone is owed $10,444, which the Territory is unable to pay.
 Some of the organizations and individuals represented by these claims are facing actual hardship because of the inability of the Territory to pay it's bills. In eff feet, these creditors have made ad vances to the Territory in vary ing amounts similar to those more publioized cash advances, totaling $200,000.00 which were pledged to the University. The difference, if any, is that most of these cred itors have advanced goods and services in the expectation that they would be paid promptly and many of them are not in posi- tion financially to wait for pay ment longer.
 In addition to all this and equally important the integ- rity, good name, and credit of the Territory are being seriously im- paired"
 Referring to his basic tax pro- gram the Governor said:
 This is the sixth occasion on which I, as Governor, have deliv- cred a message to an Alaska Leg islature. Tn my very first message in January of 1941, I remarked to the 18th Legislative Assembly that Alaska's system of tax laws was a patchwork, the complete over haul of which was already overdue. At that time I recommended re- vision of Alaska's tax laws for the following general purposes: CD to provide an equitable tax system which will distribute the burden fairly and in proportion to the ability to pay; CD to insure de- pendable flow of revenue independ- ent of fluctuations which at pres ent greatly vary the expected in come of the Territory; (3) to el- intimate some of the injustices and inequalities which now exist; (4) to diminish some of the evils which have been allowed to de- velop as the result of not con- trolling our absenteeism suf- ficiently; (5) to rid Alaska bus inesses and professions of the so- called nuiance taxes which, while contributing no substantial rev enue to the Treasury are a con- stant source of annoyance and ir- ritation to those affected; (6) to
 raise more revenue"
 Pointing to various studies
 which have been made of Alaska's
 tax structure, the Governor said:
 ''It was clearly the view of all
 these analysts that our tax struc-
 ture was a patchwork that bore
 no relation either to the financial
 capacity of the Territory, to It's
 needs for revenue, or to possible
 fluctuations in it's income. l be-
 lieve there has developed general
 agreement on the major features of the kind of basic tax system
 Alaska should. have. It is pretty
 we'll agreed that we should get . rid of the patchwork and enact ! several simple, though comprehen'
 sive tax measures. These are a
 graduated net income tax, corpor- r ate and individual property tax,
 and an equitable trade license i, tax"