New Increase Expected to Bring Upward of $70,000,000 In Revenue
Washington, May 31 (AP) - In a new effort to fill the gaps between governmental income and outgo, the senate today voted another increase in income taxes.
Shortly after Secretary Mills had told its finance committee the revenue bill as it stands would raise $840,000,000 and that $1,125,000,000 would be needed. The Connally amendment was approved. It was estimated this would bring in upward of $70,000,000.
The amendment provides for normal taxes of four per cent on the first $4000 income and eight per cent on income above $4000 with a surtax graduating to a maximum of 55 per cent on income in excess of $1,000,000.
Income rates previously voted on by the senate were three per cent on the first $4000; six per cent on the next $4000; and nine per cent on income above $8000; with a maximum surtax of 45 per cent.
Existing income rates are one and one-half, three and five per cent on these income brackets, respectively, with a maximum surtax of 20 per cent.
The vote on the Connally amendment was 86 to 3.
Meanwhile, word came from the finance committee that Secretary Mills was advocating the sales tax as a method of boosting the total revenue in the amount needed.
Wed May 30, 2012 4:05 pm