Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1933-01-12
The Tax Problem
of the
Maryland Farmer
By MILES H. FAIRBANK,
Secretary Treasurer,
Maryland Farm Bureau Federation
PART v

The report of the Tax Survey Com.
mission, recently submitted to the
Governor and members of the legis-
lature, points out that ''all in all, it is
a fair statement that, at the present
time, an undesirably heavy load OF
direct property taxation rests upon
the farmers of the counties and upon
the house owners and tenants of the
cities" 1t proposes, as a means OF
relief the maintenance of county roads
from the gas tax and motor vehicle
license fund, and lower county rate
on schools, the difference to be made
up from some form of indirect tax.
In these recommendations the Sur
vey Commission followed the program
laid down by the Joint Tax Commit
tee of the Farm Bureau and the
Grange last spring, which program
had been indorsed subsequently by the
various Boards of County Commits
sioners and legislative leaders.
On roads there is a general agree
ment on the principle of how this part
of the program could be carried out.
On schools there is a general agree
ment that the counties should be re-
lieved of a portion of the burden. The
Survey Commission recommended a
plan whereby no county would be re-
quired to levy more than 40c on the
$4,000 which, if the present educa-
tional standards be maintained, would
mean that $4,000, 100000 must be found
elsewhere. After discussing briefly the
difficulties attending the enactment of
state income tax on sales tax, the
Commission recommended a 1870 tax
on the pari-mutual winnings at our
four major race tracks.
At first glance this looked like a
reasonable source of income, since it
would average about four million an
nually, sufficient to take care of the
school burden and provide residue
that should further reduce the State
tax rate. AS would be expected, this
proposal drew forth objections from
those interested in the race tracks and
also from Judge William C. Walsh, a
member of the Commission.
In his dissenting report Judge
Walsh gives very substantial argu-
ments that the proposed tax would
seriously jeopardize the present state
income from the tracks and he pro-
poses as an alternative a sales tax on
certain luxury commodities. A luxury
sales tax was recently Endorsed by the
State Grange as an alternative if pro-
posed levy on race tracks was found
to be impracticable
The attitude of practically everyone
interested in this tax reduction cam
paign has been that the 1920 race
track levy should be supported if in
vestigation showed that the burden on
the tracks would not be increased to
point that would jeopardize the
present revenue, now totaling close to
three quarters Of a million annually to
the state and substantial amounts in
county taxes to those counties in
which the tracks are located.
So much has been written in the
press lately about the race track levy
that it seems unnecessary to launch
into discussion of it's merits here. 1t
is sufficient to say that it now seems
impossible to rally sufficient support
to put any such measure across, since
most of our leaders are convinced that
the proposal is unsound. While, doubt
less small additional tax will be de-
manded at Annapolis next month, this
source cannot be considered. Judge
Walsh has pointed out that perhaps
$50 tax could be imposed without
serious objection and at recent meet
ing of the Joint Committee of the
Farm Bureau and Grange, it was
pointed out that tax up to $50 could
be imposed without placing Maryland
tracks in an unfavorable position as
compared to those in other states.
Several other proposals were made
in the Survey Commissions report for
raising additional revenue; one, in
creased license fees on commercial
trucks; another, strict enforcement of
the existing one-fifth cent per ton mile
law on trucks.
Assuming that both of these sug-
gestions are carried out, the income
would be about three quarters of a
million annually, far short of enough
to carry out the proposals on schools
1t must also be remembered that nc
study of the tax question can be con-
sidered intelligent that does not take
into consideration the financial situa-
ton of Baltimore City. Regardless OF
criticism or opinion the financial stab
bility of Baltimore is of concern to
u