La Grande evening observer., April 14, 1927, Image 7

Ha &rmtite lEimtitw (1mtntt I want Ada
General News
; k
VOLUME XXV.
LA GRANDE, OREGON THURSDAY, APRIL 14, 19277
! NEW INCOME TAX
PLAN EXPLAINED
I BY THE GOVERNOR
Chief Executive Tells of
Its Provisions over
KGW in Portland, Ore.,
Last Night.
ln-un address delivered over The
I Oregonian radio Htatlou, KGW, lust
night, Governor I, 4. Patterson ex-
plained his new Income tax whk-h
t will bo presented tu the people of
Oregon at u special election June
I-'" .
The full text of hits address fol
low: f "It Iiiih been my Intention, wince
the close of the Thirty-fourth lcgis--t
lntive assembly, to review, to some
y t'Ment, the nctlvltleH of the scmsIoii
with reference to revenue meas
t ures; however the pressure of
duties attendant upon establishing
J a new udmlnlHtratlon has pre
. vented me from currying out my
plan until thin Into date.
"At this time T am particularly
A unxfoiis to 8 peak oX the two tax
measures which are on the ballot
f in be voted up ut the special eli-c-J
lion on June S the Income tax
'i measure and the constitutional
I a mend incut providing for the
change In the tax base upon which
Jl the Htnto tax "commission ileler
jljt mines it h levy each succeeding year,
A in computing a hIx per cent ln-
cin:iKi H'lmi'fi ii dv iifr cent lii-
create Is necessary. A j
"in lu the state tax cominis
i; slun wuh levying, directly ugulust
i property, taxes which produced rev
euue In the sum of J3.5OU.O00.
"I Thin was the general property tux,
exclusive of mlllago taxes which
.'i Jhud been voted directly by the peo
. f plo and Iiave been regarded as not
'.Jjljelng within the six per cont Hml-
station provision of the constitution.
J Vim will note tiiat the constitution
' fiends as follows: "Unless specific
vHilly authorized by u majority of tho
"legal voters voting upon the ques
tion, neither the state . nor any
; county, municipality, district, or
body to which the power to levy a
;tax shall have been delegated,
vi shall In uny'yeur, so exercise that
v power uh to raise u grcuter amount
commission may levy. f the year
111,8, $2,000,000 Nln excess of the
amount levied for the year 11127, It
will not be so levied unless the in
come tax measure is passed by vote
of tho people, und If It is so passed,
I upprehend thut the Income tux
revenues will approximate the
2.00o,000 additional tax levy nec
essary to uvoid u deficit for this
blennium.
Tolls of .Necessity
"In order thut we may not again
face such a deficiency In rtils state
and have to cull unun tho neuiile to
authorize an increased levy, such
us will be authorized if the income
tax measure is endorsed, u consti
tutional amendment raising the tax
huse to $3,500,000 after lUS has
been prepared for your approv
al ut the special election on June
28. . This amendment will serve
to restore tho tux base to approxi
mutoly what It was before It was
cut down In 1923, when the prev
ious income tux measure was In
effect. I wish to assure you thut
while I am a member of the state
tax commission, it will be my en
deavor not to levy for more than is
absolutely necessary to meet the
actual requirements of the slate,
und 1 promise you that if a levy of
less thun $3,500,000 will suffice
for the actual needs of tho slate,
the tax levy for such yeurs will be
reduced.
"Uy the wuy, this proposed con
stitutional amendment will clear Up
the question of which state tax
levies uctuully come within the six
per cent limitation of the constitu
tion und which do not. A reading
of the constitutional' amendment
will disclose to you that the mlllagc
taxes voted by the people arc not
within the six per cent limitation,
und those levies mnde directly by
the state tax commission will be
within -the six per cent limitation:
You will also note from reading the
income tax bill, as well us the con
stttutional amendment, thut the in
come tux, after the first year of . Its
operation, will come within the six
per cent limitation and will be used
to reduce tho generul property tax,
"As to the income tax in the
past the Income tux meusures which
have been placed on the ballot in
Oregon have met opposition be
cause they moused an element of
antagonism of one class of property
owner against another. Their op
ponents saw In them u desire to
place the burden of taxation on one
class of property owner only. 1 do
not favor imposing upon the in
comes of Oregon a tax greater than
Is actually required for a proper re
Indiana's Prettiest Blond-Brunet
I
'have n reflection In lower tuxes on
generul property,
,"1 have always hold to the theory
that h very largo majority of the
people In the state will pass intelli
gently upon any governmental mat
ter, when all the facts are fairly
understood by tho public. I believe,
also, that u very large majority of
the people are not only willing, hut
anxious to bear their Just share of
the burdens of government. ' There
Ih no one who does not receive di
rect benefits from governmental
functions and governmental activi
ties. I believe thero are few, If
any, who will not be proud to know
tl)tt they tiro actually bearing a
share of the cost of the government
under whoso protection they live
and whoso benefits they enjoy. j
'i earnestly urgo your careful ex
amination of theso two measures
for stabilising the finances of Ore
gon which will be submitted for
your approval on June 28, be
cause I believe that If udequuto and
accurate Information concerning
their character and purpose Is in
tho hands of tho people wlpj are to
pass on thorn; they will be
taincd . ' ,
KOKOMO LOFTY TOWN
1 '
KOKOMO. Colo. Kokomo.
liiKlieut incorporated town In C'ulo-I
ruiio, 14 10.618 fool, nearly two',
miles, above wu level. In , th
Kocky Mountains. ... I
' NK.. CU'Vrhitnl Uurcail
,. i,,t,.rostln? loslimuniiilx one blond, nno liruiict
5 Cr, J lVl,mH i , lia s.alo tho Vul.i.sl, river IioIjh-.I nmk,
,1k. beamy k.u.ll S(.vi,c (1ol 0l c.vcnlloUl. .. ,
f rr-vpnim for noniuses other thun
hn tiiivmpiit of lHindcd Indebted- ductlon of general property tuxes.
uuorMt thoreon. than the U wish to be a party to
the Introduction of a tux measure
which will impose an unfair burden
n ess or interest t Hereon, man me
Vtotul amount levied by it in the
, year Immediately preceding for
purposes other than the payment
Hut bonded indebtedness or interest
it hereon, plus sux per centum there-
',.f. m-nvlr1f.fi further that
'A ,.f .nit- innmiun In ll'W
fnpcciflcally uulliort.ed by tho legal
voters of the state, or of u county,
lnunicipullty or other district, sluill
be excluded in determining the
amount of luxes which muy be
levied ill any subsequent year.
j lie icgisumve hohniom ui i.-o,
upon uny business or upon any in
dividual, and would oppose uny in
come tux which would not produce
u lower generul property tax. The
Income tux must be regarded as a
measure for removing the presont
state deficit and for equalizing the
preseht tux burden; not us a means
for raising more nnoncy to spend.
It must not be considered a mea
sure tu permit extravagance in the
administration of the slate's busi-
liuow, enucted an income lux, "t'ss or the unwarranted advunce
tin yuu I
mi'UMih-o which was sustained by
vote (it tho people. It was enacted
for the purpose of reducing tho di
rect tax against property. The rev
cnuo from tho operation of this in
come tax resulted In a very much
lower general property tax. fur the
vear 1024. In 11P2.",. utter the repeal
of the Income tax. the state tax
commission failed to restore the
former general property tax base,
even though there was no tax
against Incomes to make up the de
ficiency. Jn fact, the general prop
erly tax for l'JL'j, In the sum of
J 1.1100.000. did not represent, by
-jinc fifty thousand dollars, the
constitutional Increase of six per
ent over tho general property tax
during 11124. when revenues were
available from the operation of the
income tax.
Itcvlcws Tax I'ticts
".s a result of this reduction In
the tax base, the state tax commis
sion, In JJeceniher. 11120, found It
self able to levy for tho expenses
of the year 1!27. only 2, 100.000.
or $1,400,000 less than was levied
In 11122. In the face of tho cost of
actual operating expenses of around
?Mlll,noo more than could be pro
vided by the tax levying budy. you
will agree that wo can not reason
ably expect the activities, of the
stato lo function properly In the
year 11127 on loss, by Jl, 400. 000
than was required In the year 11)22.
"If vou heard, or read the special
message to the legislature on the
subjects of taxation and finance.
which I delivered on February 2.
i vou will remember that I reviewed
:i the financial condition of the slate
tlniid arrived at the conclusion that
i necessary state activities required.
C including this deficiency In actual
operating expenses, ubout $3,000,
J ooo more than could, under the
'M existing law. be provided for by
1 levy made by the stale tax emu
f mission. ' Stale revenues from
I sources other than direct taxes
j have been considered In arriving at
J the deficit with which the state was
i confronted on January first of this
1 year.
"Having In mind that the state
vt required J3.000.00l) more than
could be raised without vote of the
people. I suggested to the legisla
ture the income lax and the tllh
& Ins bill, hoping that the income tax
would produce about 3.uuv.uvu
nd the tithing bill something less
than Jl, 000,000. The Income tax
f was passed. The tithing bill was
4 defeated by the legislature. Ap
1 pioprlatlons were made aggregul-
hi).-approximately S4,oo,000 In ex
I i ess f available stato revenue,
( which appropriations 1 vetoed
j bills providing for II, 300.000.
loiving a deficit of over J2.000,-
ooo for the current biennium.
f "M,H.il..i is r tho income tax
measure provides that the revenues
derived from-he Income tax law.
up to and Including 2.0O0.000
may be used- to meet the larger
Portion of this deficiency In state
revenues. While the section men
tioned provides that the state tux
df governmental expenditures.
"The Income tax, as proposed by
tho measure which you will find on
the ballot, will not Impose an un
just burden upon any person with
in the state. It bus for its purpose
the taxing of incomes derived from
Oregon buslnesn, and also the In
comes from intangible property
held by Oregon residents. The rutes
are low und the exemptions arc
low, so that while they muy reach
men and women of small Income
they do not place an unreasonable
burden on either those of small in
comes or those who enjoy larger in
comes. Much is being said by those
who.. oppose uny Income tux about
the unfair burden that will fall on
the man or woman of smalt income.
This has no foundation In fart, as
an examination of the measure will
show.
Ivvcmptious.
"Under wie proposed law, exemp
tions are provided in the sum of
$ 1 000 for unmarried persons and
$2000 for married persons or heads
of families. An exemption of $100
is allowed for each dependent.
"The rates of tax on net Incomes
are one per centum on the first
thousand dollars; two per centum
on the second, third, fourth and
fifth thousands, and three per cent
um on incomes in excess of five
thousand dollars.
"For example, a Mingle man or
woman who has an income of
$1000 per year will pay no tax.
On an Income of $15o per year,
the tax would be one per centum of
$r0. or $5. On an Income of
$2000 per year, the tax would be
one per centum of $looo or $10.
On an Income oT $3000 per ycaY.
the tax would be figured .us fol
lows: net income, after deducting
exemption. $2000; tax on the first
$1000 at one per centum, $10; -tux
oil the weronri $100 ut two per cent
um, $20 total tax $30. Kir a
single person earning one hundred
dollars per month the maximum
amount of flix to be paid would be
$2, With deductions other than the
exemption, the amount paid would
usually be less.
"Married persons or heads of
families have tin exemption of
$2000; thus on a income of $2')0n,
no tax will be paid. .Married per
sons with one child will pay no
lax on a Income of $2400; with
two children no tax will be paid
on an Income of $S0o: and with
three children no tax will be paid
on an income of $32f. A married
couple with two ihildrcn and an
income of $301111 per year perhaps
belter than the average, faintly
earning power throughout the
state, would pay un income tax of
only two dollars pVr year: this
being one pre centum of 2on, or
the dlfferenre between their in
come of three thousand dollars and
their exemptions of $2800. With
other deductions and exemptions,
this amount would. In practically
all cases be less, und in no case
higher.
"lixcir.pliui!? provided by the law
other thun for dependents, are fair
and equitable. Deductions muy be
made from the gross income in
order to ascertain the taxable net
Income, us follows:
(a) Kxpenses for doing business,
Including a fair compensation for
personul services.
. (b) interest on indebtedness.
(e) Tuxes accrued or paid with
in the income year except inherit
ance taxes or income taxes under
this enactment.
(d-e) Josses sustained In trade
or business.
(f) Loss by fire or other casual
ty not compensated for by Insur
11 nee. -
(g) liad debts.
( h) Reasonable depreciation and
obsolescence.
(1 ) Contributions to religious,
charitable, scientific or educational
organisations, up to 15 per cent of
the net income.
O) Dividends from stock in cor
porations. , !
! "Kxemptions permitted under the
' proposed law Include:
j (a) I'roceeds of life Insurance
I policies.
i (b) Value of properly acquired
by gift or bequest.
(c) Interest on liberty bonds
or other national or federal obliga
tions. V
(d) Salurles and wages of fed
eral employes.
(c) Income from the operation
of the workmen's compensation act.
I (f) Income from health or ac-i
Jcident insurance policies. i
I " A ..I....,ln 1.1..,. I. ...Ill t.n '
I vlded, and no person need fear
j legal charges for filing Income tax
j returns.
"On large Incomes the rate of tux
) Is not so heavy us to be burdon-
some, because the tux ' is against
j net income, and will, with Income
I tux payers of large amounts, us
well as those of lower Incomes,
Ever Taste, Anything
Better Than These
Deep Fried Tomatoes?
Besides being a treat that you and
every member of the family will
enjoy, these Fried Tomatoes ivill
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Being a pure vegetable oil
pressed from the hearts of golden
corn ernels Mazola fries foods
so that, ivhen ready to serve, they
are greaseless and easily digested.
And after frying, merely strain
the Mazola, using it over and over
hgain as it never carries odors or
flavors from one food to another.
Tliis recipe is from Ida Bailey
Allen's Nciv Boo see coupon
below.
Tried Tomatoes
4 medium itzcil toimilocs
Fine dry bread crumbs
Mazola
1
J l cup tin!;
Wash and dry the tomatoes and si e crosswise to J
mute three tliirl( pieces. Dust with salt, pepper
end a little suv,ar and roil in fine dry crumbs, beat
the egg, add the mil, d:p the slices in tins, dip
again 111 crpnibi mid fry in deep Mazola, hot
enough to brown a bit of breed in one minute, 3;o
degrees F. Drain the tomatoes on crumpled paper
and sent plum, or on toast uoth white sauce.
3 uf ooojino A
i
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