Newspapers / Carolina Watchman (Salisbury, N.C.) / April 3, 1936, edition 1 / Page 8
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221 MILLIONS PROCESS TAX PLAN DROPPED (Continued from page One) Representative Samuel B. Hill (Democrat), of Washington, chair man of the sub-committee, said: "We were sever keen for proces ing taxes at any time. ,We now figure we can get all the money we need from the other two taxes the corporation and windfall levies. * * * We just changed our minds. We decided not to fool with them.” Another member of the sub-com mittee, who declined to be quoted, said he wa« convinced 'hat pro r; sing taxes, even if included in the bill, "could never pass the House.” The sub-committee’s vote means that no consideration whatsoever will be given either processing taxes, or any other form of excise taxes, when the full committee opens its hearings. Similar action, voting down last-minute proposal of a general sales tax, was taken. Two other significant changes were made in the sub-committee’s report by the House tax drafts men. The group decided that the 33 1-3 per cent tax imposed on dividends collected by foreign in vestors from American corpora tions was too high, and reduced it to a flat 22 1-2 per cent. (Hill said the lower rate will yield the same or even more revenue. The sub-committee also decided that all insurance companies and all banks should be exempt from the new corporate tax, and should be assessed instead at a flat rate of 1J per cent. Formerly only banks, all mutual inshrance companies and joint stock life insurance companies were to be given this exemption . Meanwhile, the complete tax schedules under which undistrib uted corporate dividends will be taxed under the new law were made public for the first time. Two schedules, one providing favored treatment for corporations earning less than $10,000, and an other imposing stiffer rates in the higher brackets, were agreed upon, together with highly complicated "intermediate formula,” which would give preferential treatment particularly to corporations earning between $10,000 and $20,000. The first schedule, applying to companies with net incomes of $10,000 a year and under, impose a tax ranging from 1 per cent of total statutory net income (based - on withholding-op tff-HF-pe^-eent of total net income), up to 29 1-2 per cent tax on total statutory n<$ income when over 60 per cent of net income is retained. The schedule is as follows: Schedule—Companies, $10,000 and under. Percentage income witnneia: Effective tax on total earnings Up to 10 per cent_1 per cent 10 to 20 per cent___ 3% per cent 20 to 30 per cent-7% per cent 30 to 40 per cent_13 per ceni 40 to 50 per cent_18% per cent 50 to 60 per cent-24 per cent 60 to 70 per cent-29% per ceni Under the second schedule, ap plying to companies with net in come of more than $10,000 a year the tax would range from 4 pei cent of total statutory net incomf (based on withholdings up to 1C per cent of total net income), uj: to 42 per cent on total net income (when over 50 per cent of net in come is retained). This schedule is as follows: Companies $10,000 and over. Up to 10 per cent-4 per ceni 10 to 20 per cent-9 per ceni 20 to 30 per cent_15 per ceni 30 to 40 per cent_25 per ceni 40 to 50 per cent8__3 5 per cem 50 to 57% per cent_42% per cen In between these two schedule the so-called intermediate formul; would be operative but its usi would be optional. It would worl ■ I North Carolina Senator Addresses Maine Democrats Tuesday, Mar. 31 I Senator Bob Reynolds of North Carolina, keynote speaker in the Maine Democratic convention Tues day, opened his address with a quo tation from Maine’s own poet— Henry Wadsworth Longfellow’s Building of the Ship: "Thou, too, sail on, oh, Ship of State, Sail on, oh Union, strong and great; Humanity with all its fears With all its hopes of future years Is hanging breathless on thy fate.” Through the years that Union and all humanity has been helped in more ways than can be told by the sturdy sons and daughters of this honorable state. My own state of North Carolina may have pre ceded Maine into the Union, but it cannot claim—and can no other— a more distinguished list of citizens a more splendid array of public servants, finer students of arts and letters than have been produced on your tree-clad hills and beside your blue and beautiful lakes and rivers. | Mentioning a few other promi inent figures from the state of ■Maine, Senator Reynolds then ' plunged into his speech with unusu al fervor that brought the Maine Democrats to their feet, loud in praise of the North Carolinian. The burden of his song was the new deal and a fair appraisal of condi tions and results. Mentioning the steadily declining condition of busi ness at the time of the induction of President Roosevelt, the speaker pointed out many of the contrast ing market prices of common com modities that have increased with such obvious results that it is ap parent that some unusual force was in motion in the United States. Speaking of the enactment of many emergency measures by cong ress, Senator Reynolds described them as being "so constructed as to provide the foundation of a struc ture of prosperity on a principle; not now, as some of you would have you think, not radical, as the reactionaries cry, but as old as man-1 1 kind.” In discussing conditions through out the United States, the speaker called attention to the fact that more than 11,000 banks closed their doors during the 13 year period pre ceding President Roosevelt’s regime; he discussed the many phases of re lief measures which are now defi nitely away from the principle of dole and launched upon a working basis, making for self respect of the citizenship of the nation. Said the Senator, "no amount of deception or insiduous propaganda can fool the people of this country into be lieving that the new deal program has not been made a definite, in valuable and, indeed, indispensible and permanent contribution to the measure of recovery that has been accomplished. Make no mistake about it. The upward swing in business and industry now in progress is a direct result of new deal policies and not the result of those so-called natural forces of re covery which no one has ever been able to define.” Thousands To Visit Oldest Lutheran Church In U. S. Luray, Va.—Thousands of New England Lutheran tourists in Vir ginia this summer are expected to be routed by Hebron Lutheran Church, Madison county, said to be the oldest edifice of the denomina tion in America. The church was built in a valley near Madison Court House in 1740, and has been in continuous use dur ing 196 years. The original struc ture, however, has undergone many changes. Old records say that the edifice was builc by the first white settlers, who came from "Ger mana” (Germany), who were also the first to settle anywhere be tween Culpepoerc county and the Pacific coast. The organ in the church was built by Daniel Tannenburg at Lititz, Pa., and was bought by the congregation in 1800. John Yager hauled the organ from Lititz in an ox cart. The trip inquired 17 days. The first organist was Frederick Shad, who presided over the first school in Virginia, located near Hebron. The organ has been in constant use since it was installed by Philip Broughmann. The communion service was a gift of Thomas Graffin Giffen of London, England, in 1741. The to the advantage of corporations earning more than $10,000 and slightly in excess of $20,000, but corporations of much larger earn ings would find it to their advan 1 tage to use the second schedule in stead. This intermediate formula—an exercise in mathematical gymnas tics— would be applied as follows: (V Take the amount of statu tory net income. (2) Subtract $10,000. (}) Multiply the difference by the maximum rate in the tax schedule for the percentage of earnings retained. (4) Take the amount of statu tory net income again. (5) Multiply it by the minimum rate applicable to the percentage of net income retained. (6) Add (3) and (5) to get the amount: of the tax. For example, a corporation has a ; net income of $15,000. It wants 1 to retain 30 per cent of this for re ! serve. From $15,000 (1) subtract ; $10,000 (2) and the difference would be $5,000. Multiply $5,000 by 15 per cent (3) to get $75 0. Take $15,000 (4) and multiply by 7V2 per cent (5) to get $1,125. The tax therefore, would be $750 plus $1,125, of $1,875, on a cor poration earning $15,000 but re, taining only 30 per cent for re In the two tax schedules an nounced, the sub-committee agreed to use what is known as the "straight line accounting princi ple,” which means that odd am ounts in each bracket would be taxed only in proportion to their relation to the top bracket. This contrasts with the present corpora tion income tax, which goes up by steps, with no differentiation for amounts falling between the mini mum and maximum percentages. To avoid tax evasion through a holding company set-up, where the top company shows a deficit, and the subsidiaries a profit, it was learned that the sub-committee has decided that dividends declared by the subsidiaries to the holding com panies must pay a flat income tax of 22% per cent. church is now supported by de scendants of the pioneers who built it. Rev. Lyman Todd, ninety-eight, the oldest Lutheran minister in Maine, is preparing to head a dele gation of hundreds of Lutherans in his State to make a visit to the old church in June. The Maine delegation will be ac companied by many persons from Boston and other parts of Massa chusetts, increasing until it reaches Washington. Inventors 6 how Fancy Gadgets At Convention New Orleans—Gadegticans from 14 states gathered here to parade a new assortment of knickknacks —the pioducts of imaginative minds of Southern inventors. On display during the four-day meeting will be everything from quick-action suspenders to dirigi bles, together with the inventor to explain his product’s usefulness. One can see a collapsable chicken coup flanked by an automatic elec tric keyless lock, letterheads that fold and become the envelope. There’s news for those who wear out their knees picking strawber ries, for on display is a mechanical strawberry picker—a guaranteed labor saver. For hunters, fishermen, and campers there is a portable and folding bathroom with mirror and everything. For the housewife is a mail box so equipped as to notify the owner when the bills have ar rived. Other gadgets included hog catchers, revolving rood mats, dis appearing ironing boards, egg sep arators, chicken cullers, machines that wash both clothes and dishes and dry by air in a few seconds, non-removable railroad spikes, to bacco, gum, and poultry pins. Albert G. Burns of Oakland, Calif., president of the National Inventors Congress, will preside over the sessions. The sectional meeting here precedes by a few weeks the annual meeting of the National Inventors Congress to be hold at Grand Rapids, Mich., June 9 to 12. Marine Examinations Be Held This Month The examination of thirty-fivt applicants for enlistment in the U S. Marine Corps will be held at tht District Recruiting Headquarters. Post Office Building, Savannah. Ga., during the month of April, it was announced by Major Ralph E. Davis, the Officer in Charge. The Marine Corps accepts young men who are between 18 and 25 years of age, single, not less than 66 or more than 74 inches in height and who are in excellent physical condition, it was announced. Young men who meet the above requirements and desire service in the Marine Corps can obtain appli cation blanks by writing the Sav annah office, Major Davis stated. The blood content of the human body is five quarts. WINDERS FACES MURDER CHARGE (Continued from page One) j right mind and ready for trial and an order was issued to the sheriff to bring him back. Intermittently during the period he has been in the State institution hospital authorities have stated that they felt duty bound to return him for legal disposition, although it was stated his mental conditon was of a recurrent type and that he might go through the same thing again if released. Sheriff McKen zie was shot when he and a deputy went to the home in response to a call from his wife. Charles L. Coggin, solicitor of this district, stated that Winders will be tried for first degree mur der. JUST PRETEND Mother: "Now Honeybunch, eat up your rice, like a good boy.” Honeybunch: "I don’t like rice.” Mother: "Well, just pretend you like it.” \!<i»«ate««ate.«ate«.afe—aie—ale—ate_ate„at/»„ at/»-_ Nation’s Jobless Reported To Be 12,500,000 Survey Made By The American Federation of Labor Discloses Figures The latest survey of the Ameri can Federation of Labor, which was published on March 27, estimates that 12,500,000 Americans are jobbless. The survey shows, ac cording to the Federation, that in dustry has failed to take up the slack in unemployment. The es timate stated that there was a net decline in unemployment of 95, 000. This was attributed to the pick up in agriculture due to spring planting. However the spring up turn in general business activity had not begun in February and business was still showing a decline. Employment gains of the past month were registered in railroads, they showed a gain of 52,000, in manufacturing there was a gain of 17,000, but these were more than offset by the decline in building and construction industries in that they dismissed 83,000 employees and in trade there were 37,000 less em ployed than in the preceeding month. Two developments that have re cently taken place lend significance to the rumor that administration and congressional leaders are plan ning that some of the beneficial ob jectives that were set forth in the invalidated NRA might be salvag ed. The first was a move for the investigation of labor conditions since the death of the National Re covery Act. The second signifi cant move was that of President Roosevelt on last Thursday when he created a committee to make a "round up” analysis of the deeds of the NRA’s deeds. In his relief message less than two weeks ago he made an urgent plea for a "co ordinated effort on industry’s part to whittle down the number of the unemployed.” Emphasizing the fact that the unemployment problem lies not in relief but permanent work in idus try, the A. F. of L. says that "in dustry as yet shows no signs of re-employing any significant por tion of the unemployed.” Texas County Is Again Facing Petticoat Rule Fort Davis, Texas—Petticoats ruled this rugged cow county where ! a swivel-chair woman sheriff likes her job so well she seeks re-election. Mrs. F. L. Sproul came to Jeff Davis county in the Big Bend coun try 20 years ago as a school teacher and remained to become sheriff. She refuses to touch a pistol, how ever. The sheriff heads a deter mined group of women who plan a full county ticket in the July Democratic primary. Banded witn ner are jvirs. r,. ru fOWlKes, county juuge, appuinteu to fill the unexpired term of her husband who died last week, and Miss Virginia Lee Ellis, county treasurer by election the last eight years. The men folk in this mountain ous western sector, where the Apache Indians made their last stand in Texas 50 years ago, have not announced what they intend to do. Featuring for EASTER Young Men’s SUITS I in Sports Backs and Double-breasted models. Checks, Plaids and Solids $12.45-$16.50-$18.50-$22.50 GABARDINES for young men-in sports models $19.75 and $22.50 FELT HATS for the man who cares about his appearance. $1.95-$2.95-$3.45 Fine Dress SHIRTS i rubenized collars and some to button down. 97c-$1.45-$1.95 Trexler Bros. & Yost Leading Clothiers BETTER at the dodge and PLYMOUTH PLACE Good used cars from $50.00 up All Makes and All Models All Priced to Sell. WE SELL AND TRADE McCANLESS MOTOR CO. 1 EASTER OUTFITS I for j§ All The Family | — Better Values, Newest Styles § and large assortments for you to § w choose from I m New Silk Dresses for THE EASTER PARADE ^ $2.95 - $4.95 - $7.95 x Easter Coats and Suits Great assortments to select from Plain tailored or swagger models. Plain colors or Plaids $7.95 I $9.95 t $14.95 I H 1 BELK-HARRY CO. jj THE HOME OF BETTER VALUES ^ j|
Carolina Watchman (Salisbury, N.C.)
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April 3, 1936, edition 1
8
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