Evening star., 1947-03-22
By J. B. Zotmon
Ssor Sfoff CORRESPONDENT


ANNAPOLIS, Mar. 22.-An all
out fight over Gov. Lanes contro-
versial per cent sales tax bill is
expected in the House of Delegates
today when the Ways and Means
Committees favorable report on the
measure Is brought to the floor.
The bill was given a new lease on
life yesterday as a result OF the
committees 10-to-6 vote to submit
a favorable report.
A short time later an unfavorable
report by the group on the substi-
tute tax program passed Thursday
by the Senate was adopted by the
House.
A motion by r. Duncan Clark,
Republican, of Montgomery County
to reconsider the vote on the un-
favorable report was rejected, "a
to 46.
Also defeated was an attempt by
j. Raymond Burlington, jr., Demo-
crat, of the third Baltimore district
to have the House return the pro-
posed State budget for the next two
fiscal years to the Governor.
Budget Cuts Proposed.
In a resolution, Mr.. Burlington
proposed that Gov. Lane make
drastic cuts in the budget and send
it back to the Legislature at spe-
cial session.
His motion to approve the resolu-
ton was defeated, however, and it
was referred to the Ways and Means
Committee.
The Ways and Means Committee S
vote on the sales tax bill came as
surprise since the Senate had sent
a similar bill back to its Finance
Committee. The Senate then ap-
proved the substitute tax program
and sent it to the House, where op-
position apparently developed as a
result of hearing on the bill yes
terday.
Although the favorable House
committee report on the sales tax
bill was placed on the Speaker
desk at the beginning of the session
it was not brought to the floor.
Exemptions Provided.
The measure, which is estimated
to produce $18,000,000 a year in ad-
ditional revenue, had been amended
in committee to exempt livestock
poultry, seeds. feeds for livestock
and poultry, fertilizer and lime and
land plaster used for agricultural
purposes.
r Other exemptions included amuse
ments and meals on trains in inter-
state commerce.
In the afternoon, business inter
ests and representatives of other
groups had lashed out at the Sen
ate's plan to lower income tax ex-
emptions, increase beer and liquor
taxes, and impose soft drink and
tobacco levies.
The bill was offered by Senate
Democrats, including President
Byrnes, as an alternative to the
sales tax which Gov. Lane said was
the only method of meeting the
States increasing financial obliga-
tions.
Gov. Lane proposed to raise $685.
100000 in new revenue yearly, while
the substitute would yield an esti-
mated $21, 100000. The Senate sub
stitute was offered and passed after
the 11member Republican minority
offered a program based principally
on increases in personal and COR
porate income taxes.
Buyers Strike Feared.
Representatives of beer, liquor
soft drink and tobacco interests
argued before the House Ways and
Means Committee that the Sen
ate tax bill would result in reduced
revenue and bring about buyers
strike if the tax was added to re-
tail charges. .
The House, without debate, passed
and sent to the Governor early to-
day legislation to increase salaries
of school teachers and principals
1t was assumed that Gov. Lane
would hold the measure pending the
outcome of other measures relat-
ing to finances.
After the House adopted the un-
favorable committee report on the
substitute tax program; Mr CLARK
asked that the vote on the un-
favorable report be reconsidered.
"If my motion is approved" he
said, II will ask that the bill be
recommitted so that if the sales
tax should be lost, we will have
something We can fall back on.
Supported by Wilkinson.
He was supported by Perry O
Wilkinson, Democrat, of Prince
Georges County, who asserted thai
if the sales tax bill is killed, the
House will have no method by which
to adopt any tax program.
After defeating Mr.. Clark's motion
the House acted favorably on two
race track bills which had been pc.
titioned out of the Ways and Means
Committee. They were ordered
printed for third reading.
Both bills were sponsored by Johr
H. Reed, Democrat, of the 5th Balti-
more district. One provides that
the State shall receive all breakage
at race tracks and is estimated tc
bring in about 100000 a year.
The other, which increases the
State tax on tracks from 4 to 8 pei
cent, is estimated to yield $4,000, 600
The Senate Finance Committee
also reported favorable action on
Gov. Lanes $163,000,000 bridge and
highway program, but floor action
was postponed until today.
Gasoline Tax Proposed.
One measure would provide fol-
"a s139, 100000 highway program
through imposition of an extra l.
cent a gallon gasoline tax, transfer
the titling tax to the Roads Com
mission and taking over State police
S91r,r,ort hv general funds