Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-03-14
Maryland Legislators
Faced With | / Decision
On Increasing Taxes
syihe Associated Press

ANNAPoIaS, Mar. 14.-Legis-
lators charged with steering admin
istration plans through the General
Assembly had one of their most
difficult assignments today-deci-
sions on taxation.
Gov. Lane, who in message last
month reclted the need for more
revenue for the States school sys-
tenn and other governmental func-
lions, formally asked the lawmakers
yesterday to increase personal in
come and corporation taxes.
He sent to the house through
Speaker Sybert a plan to raise
$6,500,000 additionally every year by
making personal net income in 1948
taxable at 2.5 per cent and corpora
ton income at a fiat 4 per cent.
1947 Rate to Stand.
The personal income rate for 1947
would remain at the present 2 per
cent and corporation taxes at is
per cent. The existing rate of S per
cent on investment income would
not be altered.
These upward revisions were
asked soon after drawn-out hear
ing on Gov. Lanes other major tax
plan, per cent sales levy to raise
$18,000,000 a year.
Despite loud protests and indi-
cations Of tough shedding, members
of the House and Senate commit
tees dealing with taxation expect
early, favorable action on the pro-
posals.
The controllers Office has esti-
mated the administration income
tax plan would bring in $10,855,-
900 on collections in 1919 against
an estimated 1852, 900 this year on
the basis of the 2 per cent rate.
S25,0O0,O More for Schools.
Corporation taxes would yield
about $4,357 900 compared with $2,-
614,000 at the current 1.5 per cent
rate. Investment income revenue
would remain at 1884, 900 annually.
Increased education costs are ex-
pected to add $25, 100000 a year to
the States bills under pending leg
islation, while other Government
expenditures have been jumped In
the S91, 100000 budget bill submitted
by the Governor earlier in the ses-
sion.
The supplemental budget, yet to
be introduced, may add some $40
100000 to that already asked in
general fund appropriations.
Yesterday, the Senate passed and
sent to Gov. Lane an act requiring
the presentation of a prescription
for purchase of barbiturate sleeping
tablets.
Cooperative Tax Sent Back.
After much pickering the Senate
voted 1913 to send back to COM
mittee a bill to tax farm co-opera-
tives, a move tantamount to killing
the measure. The legislation would
have exacted a tax on the co-opera-
tives' net income after distribution
of cash patronage payments.
Meanwhile, legislators just about
erased any possibility of enacting a
bill to permit the leasing of Chesa-
peake Bay oyster bars, although the
United States Fish and Wildlife
Service came to the support OF such
a program at hearing yesterday.
Unfavorable reports are expected
from Senate and House committees
holding the measures.
The oyster question was kept alive.
however, with the House Chesapeake
Bay and Tributaries Committee re-
turning a favorable report on legis-
|lation to permit Maryland courts
to try Virginians caught poaching
in the Potomac River. A similar
bill reached the Senate early in the
session, but before passage it was
amended to provide that the boats
of Virginia poachers could be i'm