SOURCES OF ADDITIONAL REVENUE 307

Sources oF ApprtioNAlL RevENUE TuaT May
Br CoNSIDERED

In this section it is proposed to consider the principal
sources from which the state may derive the additional
revenues needed to carry out a minimum expenditure program
 during the next few years. No attempt will be made to
estimate the revenues that the state might obtain over a
considerable period by means of increased rates for certain
taxes or the imposition of new taxes. If such estimates were
attempted, there would naturally be a large margin of error.
For the purpose of the following analysis, it 1s assumed that
for each year of the first biennium in which changes in the
revenue laws can be made effective, the state will need
$3,829,900 of revenues in addition to those which are obtained
under the present system. This amount was suggested as a
reasonable additional sum that the state might undertake to
raise during the period required for the adjustments in the
revenue system, particularly in administration.
It is recognized that the suggested change in the general
property tax base could not be made effective before taxes of
1932, which would be levied on valuations as of June 1, 1931.1
The elimination of intangibles from the general property tax
base would, of course, involve a constitutional amendment,
and in this section it is assumed that the necessary amendment
 will be approved so that intangibles will be exempted
from the general property tax for taxes of 1932. It is very
doubtful, moreover, whether any change in income tax rates
could be made applicable to the taxes based upon incomes
for the year 1930. This would mean that no part of the
additional revenue needed could be derived from the income
taxes collectible in 1931. The time factor, however, does
not mean that there need be any particular delay in a bond
issue for capital purposes, other than that occasioned by the
time required for the necessary constitutional amendment.
Although changes may be made in the general property
tax base and in income tax rates for taxes collectible in 1932,
it does not follow that the yield from the income tax will attain
an amount as large as might beexpected fora period of several
1 Exclusive of the Merchants and Manufacturers Tax.