The Boston Globe from Boston, Massachusetts • 20

The Boston Globe-Wednesday; June 20 Democrats Boost Their Goal Tax Gap Narrows jjcronanDAiM Bammsnn ccroioaiPAiKra' since the nronnsal was first suggested as being contem NOW pluicd by the Taxation Com mittee. Thi Insurance romnnnipi for low, low Prices Shop Jordan's claim such an increase will re suit in retaliatory taxes by other states upon the insurance firms with home offices ir Massachusetts. The overall impact, the insurance lobby claims, would be about $18 million U'hiith wnnlrl hav on New England's Largest Assortment of Famous Brand be passed on to policy holders. revrnue by a 51 percent Increase in the tax on earned Income and a 3 percent sales tax. The Democratic proposal is expected to increase the income tax also, but instead of a sales tax, it would levy a vaiety of so-called "small" taxes on vending machines, realty trusts, hotel and motel bills, rental income, bank deposits, insurance premiums and others.

The Taxation Committee Is "pretty well agreed" on what the bill should contain, according to a reliable source. However, there are "a couple of areas of disagreement," the source added. One is over the provision that would increase the tax on insurance companies. The powerful insurance lobby has been bombarding the legislators with mail ever The Taxation Commltte will continue to meet In secret at different daily until the hill Is drafted and ready for presentation. These locations are all within 10 miles of the State House.

Given legislative permission to travel, the committee re sorted to this extraordinary method for its deliberation so as to be free from State House interruptions. By S. J. MICC1C1IE Revisions in the Democratic tax plan mnde at a hideaway session of the Legis-lature's Taxation Committee will boost the total estimated yield to nearly $200 million, it was learned today. This is expected to put the Democratic plan within compromise distance of Gov.

Volpe's $214 million tax program. The changes devised by the Taxation Committee at a Cambridge motel Tuesday Increases appreciably the previously reported goal of $175 million contemplated by the Democratic leadership in rebuttal to the Volpe program. Volpe has stated repeatedly that $175 million is substantially below what he feels is needed to accomplish adequately the tasks of balancing state spending, aiding the cities and towns, and launching the Willis Commission improvements in public education. The Taxation Committee announced that its plan will be filed with the Legislature next Tuesday and it will be "a most fair and equitable solution to the fiscal problems facing the Commonwealth and its cities and towns." The committee has scheduled a public hearing on its bill for June 21. The legislation will run some 400 pages, making it one of the biggest in history.

The changes adopted by the committee at its super-secret session deal with modifications in a variety of taxes that would be imposed on the business community. The Volpe plan would raise ft 7 IN ADDITION TO JORDAN'S LOW, LOW PRICES ALL OF THE EXCISE TAX FROM THE MANUFACTURER WILL BE REFUNDED TO YOU WHEN THE PROPOSED LAW PERMITS EM CARR 95 189 I 9 X1 "Weathermaker" Compacf. powerful, 7000 BTU, 72 model requires no special wiring. 2-speed Fan. Exhaust pumps out stale air vents bring in fresh air.

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