Henderson Daily Dispatch

Nearly Million Rise In
State Income Tax Funds
(Continued from Page One.)

by A. J. Maxwell, Commissioner of Revenue. Checks are coming in by the hundreds today and it is expected that this total will be from $500,000 to $1,000,000 larger by tonight.

However, the income tax rates are from 15 to 25 per cent. higher this year than last, so that collections must be larger if the amount of revenue expected from the income tax is obtained, Commissioner Maxwell pointed out. Under the old rates in effect last year, the income tax yielded a total of $6,100,000. This year, as a result of the new and higher rates, especially on the larger incomes, where the rate was increased from five to six per cent, it is hoped to get at least $7,200,000 from the income tax in spite of the leanness of business conditions in the State during 1931. When the higher rates were enacted by the 1931 General Assembly, it was estimated they would yield between $7,800,000 and $8,000,000. But this estimate has since been reduced to $7,200,000.

The total shrinkage in the State's revenue during the present fiscal year has been fully $8,000,000, according to the newest estimates by the Department of Revenue and the Budget Bureau
year. The revenue bill passed by the 1931 General Assembly was expected be yield $21,230,000. Now the Department of Revenue does not expect to collect more than $18,250,000, or a difference of $3,000,000. In addition, the General Assembly passed an appropriation bill that exceeded the revenue by almost $2,000,000. However, the reduction in the appropriations made by Governor Gardner and the Advisory Budget Commission, will reduce the actual operating deficit of the State to about $2,500,000 a year or possibly less. But for the cuts made, the deficit would have nearer $5,000,000 a year.