page_title: Ruby Laffoon
section_title: Fight for a sales tax
hierarchical_section_title: Ruby Laffoon / Governor of Kentucky / Fight for a sales tax
caption_attribution_description: English: Happy Chandler, 1940.
context_page_description: Ruby Laffoon was an American politician who served as the 43rd Governor of Kentucky from 1931 to 1935. A Kentucky native, at age 17 Laffoon moved to Washington, D.C., to live with his uncle, U.S. Representative Polk Laffoon. He developed an interest in politics and returned to Kentucky, where he compiled a mixed record of victories and defeats in elections at the county and state levels. In 1931, he was chosen as the Democratic gubernatorial nominee by a nominating convention, not a primary, making him the only Kentucky gubernatorial candidate to be chosen by a convention after 1903. In the general election, he defeated Republican William B. Harrison by what was then the largest margin of victory in Kentucky gubernatorial history.
  Dubbed "the terrible Turk from Madisonville," Laffoon was confronted with the economic difficulties of the Great Depression. To raise additional revenue for the state treasury, he advocated the enactment of the state's first sales tax. This issue dominated most of his term in office and split the state Democratic Party and Laffoon's own administration. The lieutenant governor, A. B. "Happy" Chandler, led the fight against the tax in the legislature.
context_section_description: Laffoon's administration was confronted by the economic difficulties of the Great Depression. While he proposed a number of improvements, money was not available in the state budget to implement his plans. In his first full year in office, he cut $11.5 million from the state budget, but it remained out-of-balance. The state issued additional interest-bearing warrants to cover its debts. In 1931, these warrants accounted for 24.2 percent of the state's receipts; by 1932, that number had climbed to 40.2 percent. In order to raise more funds, Laffoon proposed a 2 percent state sales tax in 1932. The proposal was extremely unpopular with merchants and private citizens, and it showed little promise of passing in the General Assembly. On March 2, 1932, a mob of 100 anti-tax protesters stormed the governor's mansion, damaging some items inside. In an attempt to get the tax passed, Laffoon agreed to seek only a 1 percent tax. The proposal passed the House, but a Senate committee refused to report it to the full chamber for a vote.
  The sales tax proposal caused a rift in the Democratic party generally and in Laffoon's administration specifically. As presiding officer of the Senate, Lieutenant Governor A. B. "Happy" Chandler had led opposition to the tax in the legislature. Highway Commissioner Ben Johnson sided with Chandler, as did former Laffoon supporters Allie Young and J. Dan Talbott. In retaliation, Laffoon vetoed $7 million in appropriations and a measure to cut property taxes at the end of the legislative session. Among the few pieces of legislation that passed during the session were bills reorganizing the highway department, making the state Board of Charities a partisan entity, and further removing the Fish and Game Commission from the control of sportsmen. A redistricting bill was hastily passed at the end of the session, reducing the number of congressional districts from 11 to 9, per the most recent census results, but charges of gerrymandering kept the bill tied up in the courts, preventing it from taking effect in time for the 1932 congressional elections. Consequently, all of Kentucky's representatives that year were elected at-large. The Louisville Courier-Journal called the 1932 legislative session "about the worst legislative session in Kentucky's history".
  Laffoon responded to the economic crisis by declaring a four-day banking holiday to begin on March 1, 1933. He twice extended the holiday, which finally ended on March 18. Responding to complaints of low prices by farmers, he closed burley tobacco markets in December of that year. At the end of the 1932 fiscal year, figures showed that the state incurred a $2 million deficit. Kentucky was also unable to secure significant financial assistance under President Franklin D. Roosevelt's New Deal because the state was often unable to raise the required matching funds.
  Though Laffoon was determined to pass a state sales tax, he vowed not to call a special legislative session to consider the issue. However, in August 1933, he did call a special session to debate a "gross receipts tax", which was essentially a sales tax by another name. Johnson and Chandler again led the opposition to Laffoon's plan; Laffoon called them, along with Allie Young and U.S. Representative John Y. Brown, Sr., "the most insidious lobby that ever infected the Capitol". He reportedly further charged that opposition to his tax program was financed by "a bunch of New York Jews". Despite Laffoon's rhetoric, the sales tax was again defeated.
  The General Assembly was split three ways when it convened in 1934. Approximately one-third of the Assembly was Republican, one-third was pro-Laffoon Democrats, and one third was anti-Laffoon Democrats. Using the promise of new roads in Republican districts as leverage, Laffoon and political boss Tom Rhea formed an alliance with the Republicans. The bipartisan alliance succeeded in enacting several measures to benefit education, including establishing a Council on Public Higher Education, extending the school year to six "or more" months, and mandating schoo
caption: Happy Chandler, Laffoon's lieutenant governor, opposed his call for a state sales tax.
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