Evening star., 1947-03-22
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Up for Debateb by.
Delegates Today.
Substitute Measure
Rejected by House
After Passing Senate
By J. B. Zotmon
stcr stoff CORRESPONDENT


versial per cent sales tax bill il
expected in the House of Delegate:
today when the Ways and Means
Committees favorable report on the
measure is brought to the floor.
The bill was given a new lease or
life yesterday as 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, 81
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 resolution. Mr.. Burlington
proposed that Coy. Lane make
drastic cuts in the budget and send
1t back to the Legislature at spe-
cial session.
His motion to approve the resolu-
ton was defeated, however, and il
was referred to the Ways and Means
Committee.
The Ways and Means Committee
vote on the sales tax bill came as
a surprise since the Senate had sent
a similar bill back to it's 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 S
desk at the beginning of the session
1t was not brought to the floor.
Exemptions Provided.
The measure, which is estimated
to produce $18,000,0O0 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.
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 Sem
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
Byrne5, 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 S25,-
100000 in new revenue yearly, while
the substitute would yield an esti-
mated $21 100000. The Senate SUBJ
stitute was offered and passed after
the 11-member 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 anG
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, Il 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, ths
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 thai
the State shall receive all breakagt
at race tracks and is estimated tx
bring in about $1000,0O0 a year.
The other, which increases tht
State tax on tracks from to PEI
cent, is estimated to yield $4,000, 900
4 The Senate Finance Committee
also reported favorable action or
Gov. Lanes s163, 100000 bridge anc
highway program, but floor actor
was postponed until today.
Gasoline Tax Proposed.
One measure would provide fol
a $139,000,000 highway program
. through imposition of an extra /.
; cent a gallon gasoline tax, transfer
the titling tax to the Roads Com.
mission and taking over State police
support by general funds.
The other measure calls for tol
bridge system, with s24,000.000 al
+, located for Chesapeake Bay bridge
Optional rent control for all bu
, seven counties of Maryland made
: its first real progress yesterday wher
the Senate approved a favorable re-
:. port of it's Judiciary Committee.
- A bill to grant the State Road!
( Commission power to regulate build
( ing of any type within 200 fee
: of the right of way of certain high
ways was killed in the Senate High
ways Committee, whereupon Sena