Evening star., 1935-03-24
SALES TAX DEBATE
RACES INTO NIGHT
Maryland Senate Receives
Bill on UnfavorabIe
Report.
BULLETIN.

LAX SCOIcQ A1lOtIIcI fNlOIS hG @'%O
am. today when the Senate adopt
ed its Finance Committees un-
favorable report on the Gorfne
bill. A short time before a motion
to substitute the bill for the un-
favorable report was defeated. a.
to H. Adoption of the report does
not definitely kill the measure,
however, as the rules permit it TO
be reconsidered within two days.
BY q stan Correspondent of The Star.
ANNAPOLIS, Md, March "a Sun
day).-A bitter debate on the 2 per
cent sales tax was raging in the
State Senate early today, with the
prospect that it might continue for
hours.
The measure, already passed by the
House. was brought before the Sen
ate shortly before II O'Clock last
night with an .unfavorable report
from the Finance Committee and
the opposition forces Immediately
went into action against it on the
floor.
The debate was on the motion Of
Senator j. David Bale. Carroll County
Republican and minority floor leader,
to substitute the bill for the COM
mittee's unfavorable report.
Coad Opens Debate.
The majority floor leader, Senator
j. Allan Coad of ST Marys County,
leo of for the sales tax opponents.
He was followed by Senator Stedman
Prescott. Montgomery County Demo-
crat. and Senator Harry T. Phoebus,
Somerset County Republican, both of
whom opposed the sales levy.
During the early morning debate
Gov. Harry W. Nice, who several days
ago called upon all Republican mem
bers Of the General Assembly to sup
port the tax. entered the galleries and
listened closely to the discussion.
The first speakers favoring the bill
were Senators Melvin L. Fine, Balti-
more City Republican; Joseph L. DON
ovan, Howard CounZy Democrat. and
W. Frank Every, Baltimore City Dem
ocrat.
COad opposes Tax.
In opening the debate. Majority
Leader Coad. who is chairman of the
Finance Committee, told the Senate
he would oppose the sales tax first,
last and always"
Il regret that during the days the
Senate and House have been devoting
a great deal of time and energy to
the problem of raising money for re-
lief. nothing better has been brought
forth than this 2 per cent sales tax. ''
he said. My opposition to such a
tax is chiefly because it is not dis
criminatory tax
Ordinarily no one believes in dis
criminatory taxation. But in times
like these favor a tax that is dis
criminatory as between the man
staggering along on the ragged edge
of bankruptcy and pauperiSm and
his more fortunate brother-the man
able to stand it."
CIimaxes Day Of Fights.
The night session climaxed a day
Of bitter fights over the bill, the
unfavorable report of the Senate
committee only emphasizing the
breach between the two Houses over
the means of raising relief revenues.
The only bright spot in the day
for the haraSsed legislators was the
news from Washington that Federal
Emergency Relief officials had given
Maryland an additional $400 900 for
relief purposes. This obviated the
necessity of immediate action by the
Assembly to provide funds.
Pushes Composite Tax.
During yesterdays morning session,
the Senate had proceeded with the
composite tax plan, with which 1t
proposes to finance relief In lieu of
the sales tax. without debate, it
passed bills imposing levies of 10
per cent on patent medicines, toi-
let articles and cosmetics and a s.
cent per gallon floor tax on distilled
spirits shipped out Of Maryland.
Those taxes, together with the tax
on gross sales of utilities, which was
passed by the Senate Friday, form
the basis Of the Senate revenue plan.
The utilities tax already has been
killed by the House and tomorrow
the House will consider the other
Senate proposals.
Inadequacy in Taxes.
The taxes on cosmetics, patent med
icines, whisky utilities. all of which
are dedicated to relief, are not esti-
mated to produce sufficient revenue to
meet the $4,000, 900 demanded by the
Federal Government. Inclusion Of
the 3.25 cents per gallon tax on beer
in the Senate plan, however. would
raise the estimated revenue from all
those sources to approximately $5,-
000, 900.
During yesterdays afternoon ses-
sion the Senate passed with no dis
cussion O bill which would amend