Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1935-03-29

IN AGREEMENT
ON RELIEF TAX
Passes One Per Cent Tax On
Gross Receipts. Law To Be
Effective On Monday
NEW LAW OBJECT OF
MUCH ADVERSE OPINION

The State Legislature, on Tuesday
night, broke the deadlock which had
baked all progress on taxation for
relief and passed the one per cent
gross retail receipts tax.
Under the law which will become
effective Monday, the merchant is at
liberty to absorb the one per cent levy
that will be made on his receipts for
retail sales, or pass it on to the con-
sumner. The consumers tax bill, in
troduced by Speaker Emanuel Gorfine
(Dem, Fourth Baltimore), would have
obliged the consumer to pay the two
per cent tax. The law will go into
effect next Monday and Comptroller
Gordy has been busy setting up the
machinery for enforcement of the tax.
Governor Nice has all along been
opposed to the newly-enacted law, and
some doubts had been expressed as to
his signing the bill; but he is quoted
as saying: "Even in the face of I'M
precedented protests, I find myself
with no alternative other than to ap-
prove (subject to an opinion from the
Attorney General as to it's legality
the emergency gross receipts tax bill
passed through the General Assembly
early this morning.
~ shall sign it, but most reluctantly
and only under the stress of the pres
ent emergency. I did not sponsor it,
nor did I have any part in it's prepara-
ton or enactment.
"Every citizen of Maryland knows
that I, as last resort, was for the two
per cent retail sales tax. I definitely
and unequivocally took my stand in
approval of that tax-raising measure
I presented that method to the Cen
eral Assembly of Maryland and ear
nestly recommend it's adoption. In
announcing my position stated:
In this hour Of our emergency,
am of the opinion that the two per
cent retail sales tax is the fair, most
expeditions and only sound way of OBJ
tanning the funds necessary to comply
with the demands of the Federal Gov
eminent, care for relief and provide
for old age pensions. firmly believe
that the two per cent retail sales tax
should be Immediately enacted into
law.
"This proven sound and equitable
method of raising revenue in this
emergency has been discarded, and I
regret that have no alternative but
to sign the bill, even though it un-
Justly burdens business. Relief must
be provided and my obligation to the
State and the destitute of Maryland
must be fulfilled"
A great many protests had been
sent in against the bill from Balti-
more merchants, some going as far as
to say that the enactment of the law
would cause SO per cent failure
amongst business men.
The Baltimore Sun, of Thursday,
says, editorially:
"In short, it offends on almost ev-
cry score. To the extent that it may
be passed along, it is likely to be a
burden on the poorest people. To
the extent that it must be absorbed
by the merchant, it is laid blindly and
may become disastrous to hard-press-
ed bushes men. And it places an al
most unbeatable advantage in the
hands of the dishonest tradesman as
against his responsible competitor,
while it sends the State into counting
rooms in a manner that places an OBJ
vious premium on petty graft.
eff the Legislature had tried to
raise money for unemployment relief
and old-age pensions in the worst
possible way, it could have made few
changes in this BILL"
Some idea as to the working of the
tax bill may be obtained when it is
understood that every merchant, be-
ginning May 10, and on the tenth of
each month thereafter, must make a
return to the Comptroller on forms
prescribed or furnished by the State,
stating the name of the vendor, the
address and the amount of the total
selling price of all tangible personal
property sold. On the basis Of this
statement the tax will be levied.
The returns need not be under oath
fNout;nund m, paUo ~