Indianapolis Times, Indianapolis, Marion County, 25 January 1938 — Page 5

TUESDAY, JAN. 25, 1938

FACTORY SALES TAX UNLIKELY, BOEHNE SAYS

Hoosier Predicts Exemption From Profit Tax for Firms Of $25,000 Income.

Times Special WASHINGTON, Jan. 25.—Adviceé of James H, R. Cromwell, husband of the world’s wealthiest girl, Doris Duke, to abandon income and inheritance taxes and use a manufacturers’ sales tax for all Federal financing “fell entirely upon unfertile soil” Rep. John W. Boehne Jr., of Evansville, Ind. declared today.

Rep. Boehne is the Indiana congressman on the House Ways and Means Committee which is holding tax hearings. Mr, Cromwell appeared before the committee last week, “The press of the country has made much of the testimony of Mr. Cromwell,” Rep. Boehne said. “In his opinion all estate taxes, inheritance taxes, gift taxes and eventually income taxes should be withdrawn in favor of a general manufacturers’ sales tax. “This carries the implication that the burden of the cost of Government should be placed on those least able to pay, rather than on the principle of ability to pay. “Of course his testimony fell entirely upon unfertile soil.”

Sees Tax Law Changed

Rep. Boehne predicted that corporations with net incomes under $25,000 will be exempt from the undistributed profits tax, but he anticipated only minor changes in the capital gains tax he said. “Tt will be interesting to watch the reaction of business once the bill is presented to Congress. We have received hundreds of letters from all over the United States stating that the recession in business is due to the imposition of these so-called ‘onerous taxes’ and that they are hurting the little fellow almost without exception. “Should the little fellow now be lifted from under this tax, will we then hear the wails and pleadings of big business that there should be no discrimination whatever?

Cites Source of Tax

“There may be some minor changes in the capital gains tax, but the principle, I feel, will remain in the bill. “Here again big business asks to be relieved of a tax, when as a matter of fact this tax does not reach but a very few corporations. Eightyfive per cent of all the taxes collected under the capital gains tax come from exchanges of stock on the great stock exchanges of this country. “So when the average business man asks that this tax be withdrawn, as a general rule, he is simply writing his Congressman what some other person asked him to do. There are some valid reasons given by business why this tax should be changed somewhat, but do not éverlook the fact that 85 per cent of all taxes collected under this law are received as a result of gambling speculations.”

SCHOOL TO SPONSOR SCHOLARSHIP DANCE

“The Semester Swing,” fifth of the scholarship dances at Washington High School, will be held tomorrow afternoon in the school

gymnasium. Faculty sponsors are Mrs. Geral-

dine Johnson, Mrs. Virginia Guyton, Miss Marie Smith, Justin Marshall, Lloyd Mann, Arthur Shumaker and | Charles Money. Students on the arrangements committee are Dollie Avell, Grace Buchanan, Dorothy Farrington, Janie Hawhee, Arthur Blum, David Davidson, Jack Murray, Kavid Rodenbaugh and Malcolm Rinker.

GREETING CARDS for ALL OCCASIONS

Remember Today Is Someones Birthday!

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Times Photo. Clarence L. Glenn (right), New York City, National Recreation Association representative, discussing plans for the Y. M. C. A. recreation training institute to be held here Feb. 7 to March 4 with Harry W. White, chairman of committee on arrangements.

COLLEGE AVE. SEWER PLAN IN FINAL FORM

Decision on Plea for WPA

Funds Pending.

City Engineer Henry B. Steeg today announced that blueprints have been completed for the mile-long College Ave. storm sewer. He said all plans will be submitted to the Works Board soon for study and then to Mayor Boetcher when he returns from Florida within the next two weeks. Mr. Steeg said a decision is yet to be reached on whether the $350,000 project should be undertaken under private contract or whether WPA funds should be asked. He explained that if the final decision is to do the work by bond issue, 60 to 90 days must elapse under the law before construction can be started. Mr. Steeg explained that planning the sewer has been difficult because the area is heavily traversed and already is crowded with existing sewers, water, cable and gas lines, many of which will have to be relocated.

BANK DIVIDEND $12,000

KENDALLVILLE, Jan. 25 (U. PJ), —Depositors of the defunct Noble County Bank & Trust Co. today had received a 5 per cent dividend payment, totaling $12,000. Payments now total 85 per cent of original deposits.

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