Evening star., 1947-03-24
Lane Rules Out
Special Session
In Tax Deadlock
Governor Serves
Notice He VIII Press
Fight for Sales Levy
ix thu Asseeiaisd Pres.

BY ths Asseeiafed Press
ANNAPOLIS, Mar. 24.-Despite
rebuffs In both legislative branches,
Gov. Lane today renewed his de-
nland for adoption of a 2 per cent
consumers sales tax after he re-
jected the suggestion of a special
Maryland General Assembly session.
The Governor served notice last
night TN a statement he has not
surrendered In his fight for the sales
tax which he says Is necessary If
funds are to be available for school,
roads, welfare and health programs.
Just one week remains before the
deadline for adjournment of the
assembly and no legislation to raise
the estimated SIS 100000 in new
revenues has been passed. Evidently
responding to suggestion that this
session be terminated Immediately
and special session called next
month, Gov. Lane said:
THE effort to spread the i'm
preston that the General Assembly
is so far behind in its work that a
special session is advisable or neces-
sary is not warranted by the fact,
nor by the immediate prospect.
Sales Tax Rejected, 66 to 81.
The tax fight reached tenn
porary impasse Saturday night
when the House of Delegates in a
turnultous session rejected by a
65-5l vote a favorable Ways and
Means Committee report on the
sales levy.
Gov. Lane issued this statement:
mo taxes are popular, but the
fact is that the sales tax. has re-
>sulted in less opposition than any
other proposals, and I have con-
cluded that my duty requires me
to continue the effort to have it
enacted.
with this single question out
Of the way, the General Assembly
will be in good position to dis
pose of the remaining features of
the administration program"
Order of Events.
Here is the order of events lead
ing up to the tax deadlock:
/. The sales tax bill to raise an
estimated SIS, 100000 a year was
introduced as an administra tion
measure simultaneously in both
Houses. Also submitted was a
measure to increase personal income
taxes from per cent to rs per
cent and corporate incomes taxes
to 4 per cent to draw an additional
$6,500,0 in new revenue annually.
z. Senate Republicans offered as
an alternative to the sales tax a
plan to revise the income tax bill
and to increase levies on tobacco,
beer. liquor and amusements.
3. The Senate returned the sales
tax bill to committee and II of the
1s Democratic Senators sponsored q
measure to increase the beer tax
from 8 cents gallon to a cents,
raise liquor taxes and to- impose
soft drink and tobacco levies. The
bill was passed and sent to the
House.
Cooperation Offered.
4. The House Ways and Means
Committee rejected the Senate bill
and brought the sales tax measure
out on the floor with a favorable
report, but the House refused to
accept the recommendation.
S. After the House defeated the
sales tax bill Saturday, group of
Senators offered Gov. Lane Coop
Grafton in drawing up new tax
plan. Gov. Lane thanked them, but
announced shortly afterwards he
felt the sales tax was the only an
swer to the problem.
He declared in last nights state
ment:
'It was to be expected that there
would be organized opposition to
the sales tax proposal, but the re-
suit of the controversy seems to
make 1t clear that the sales tax
must be adopted If the educational,
health. welfare and roads programs
are to be realized.
"Tile Senate did not approve the
taxes, but adopted an alternate set
of taxes. The House rejected the
Senate plan, and then voted down
the sales tax, leaving no provision
whatsoever to finance the programs
both branches indicate they favor
."
Says House Is justified.
He said the House was justified
in turning down what he termed
the "unsound" plan Of the Senate
Democrats.
1.-The General Assembly under
stands" he said, "and all the peo-
pie of Maryland should understand,
that all the appropriations and all
of the programs to be financed by
those appropriations are contingent
upon revenue bills adequate to A.
nance the proposals"
He asserted schools and stats
are far below the standards which
the people of Maryland are en-
titled to have for their children" ;"
and that to improve the situation,
new revenues must be raised.
Sherbow Report Cited.
Celebrating his stand. he said:
The supplemental budget con-
templates the realization of all the
recommendations of the Sherbow
report for the distribution of State
revenues to Baltimore City, the
counties and incorporated towns.
Under the proposals made by
me, the funds for distribution will
be greater than estimated in the
Sherbow report. Under the pro-
visions of the supplemental budg-
ct. the City of Baltimore will re-
ceive Tin 194S) an estimated $8,257,-
63f, and the counties and incor-
porated towns will receive $11.-
99s ,627.
THE sales tax and the increase of
I cent in the gasoline tax las pro-
vided in the roads bilD make this
distribution to the localities pos
sible."
He said the question of new rev.
enues involved the ability of the
State to give adequate service to all
the e people"
hHMaYvIand Ranks