Image provided by: SEIU Local 503; Salem, OR
About The Oregon state employee. (Salem, Oregon.) 1944-195? | View Entire Issue (May 1, 1947)
10 allowing division of income and sepa rate returns. Case I—— With sales tax and reduced income tax—Personal exemptions would be $2600. Taxable income would be about $2560. ($3,000, less, $140, less two standard deductions of 5 per cent each). No state income tax. Sales tax about $32. Total tax $32. Case II—No sales tax and increased income tax—Personal exemptions would be $1600. Taxable income would be about $960 v($3,000 less; $140, less two standard deductions of 5 per cent each). State income tax about $19. No sales tax. Total tax $ 19. It is a fact that the combined sales tax and reduced state income tax will cost the average family more than would the alternative plan of no sales tax with increased state income tax. This is true in all income brackets; It is estimated that such increased costs would range about as follows for four-person family: Gross Income Est. Annual Increased Cost Sales Tax Plan $ 1,000 2,000 3,000 4,000 | 5,000 7,000 10,000 ' -$,12 i H R 3 U 8 14 I B B ! 39 Some other effects of ;the twp al ternative plans appear to be: 1. The sales tax plan would elimin ate income tax payments for an ini, creased number of people. On the other hand, it would bring into the direct tax-paying body a large g r o u p of people who now pay no direct taxes, 2. The alternative increased income tax plan (effective January 1947, if the sales tax plan is defeated) would increase the number of people who would be required to file forms and pay a state income tax, and would impose a 1 per cent withholding tax on all wages and salaries to catdh tax pay ments from part-time workers, tran- sients, etc., who might otherwise evade payment. 3. The revenue to state funds for general governmental functions appears to be slightly greater via the increased income! tax basis, while the revenue, to the state as a whole (state, county, city and school district funds) appears to be greater via the sales tax basis. Nearly two-thirds of all the greatest deeds ever performed by human beings —the victories in battle, the greatest books, the greatest pictures and statues ^rrhave been accomplished after the age of sixty. 9— Highways of Happiness. Discussion Of Proposed Sales Tax Plan By VIRGIL G. O’NEIL, Director of Public Relations The writer claims no superior knowl edge of the subject of taxes, and pro fesses no prejudiced views on the mat ter. However, it seems fair to analyze the proposed sales tax measure on the bases of (1) factual data, (2) human behaviors (3J- economics and (4) the general welfare of the state. The fol lowing analysis and opinions are those of the writer. Factual data shows that county, city and school taxes now levied on property will be reducible by about eleven million dollars a year, based on expert estimates of Oregon’s current spending. This re duction in property taxes is state-wide and removes to large extent the present hazard of losing one’s property through failure or inability to pay a property tax. The theory of property taxation isbased, on an ancient method, its pay ment is mandatory if one is to preserve his investment, and it has been the creation of many hardship cases in old
