Evening star., 1948-01-08
Move toDeduct
u. ). Tax Barred
In Maryland
Legislative Council
Also Rejects State
Withholding Setup
By the Assoeioted Press

BALTIMORE, Jan. 8.-The Leg
islative Council declined yesterday
to sponsor a proposal to allow
Marylanders to deduct their Federal
income taxes from State returns.
It also voted against the setting
up in Maryland of withholding
system for paying State income
taxes, calling the idea impractical. :"
The question of giving veterans
top priority on eligibility lists of the
State merit system also will be
studied.
Senator Sothoron, Democrat, of
Prince Georges County, Finance
Committee chairman, reported it
would mean a loss of $4,000 900 in
revenues if taxpayers were able to
deduct Federal income taxes in
making State returns.
He said the State would have to
impose new taxes to make up the
loss if the deduction were allowed.
Three Measures Approved.
The council also followed the rec
concentrations of its Finance Com
mittee in voting to approve for sub
mission to the 1949 General Assem-
bly, session measures to:
l. Eliminate the tax on gross re-
ceipts of safe deposit and trust COM
panies;
2. Reduce the franchise tax On
e. savings bank deposits:
g. Allow the simplifled tax form
to be used by persons with incomes
ranging up to $4,000. The present
limit is IS 5000.
Senator Sothoron, estimating the
tax on gross receipts Of safe deposit
and trust companies produces $50
900 annually, said the compelling
argument" for its elimination is
that it places them in an unfair
competitive position with Federal
banks, which do not pay the levy.
Building and Loan Levy Urged.
The council voted to recommend
that the franchise tax on savings
bank deposits be cut from Is cents
per 500 to 10 cents Senator Strom-
ber, Democrat, of Howard County
suggested the revenue loss (esti-
mated at $350,0O0 annually for Bal
timore city and 100000 for the
State) should be offset by a levy on
building and loan associations.
The council will study the entire
merit system at the suggestion of
Senator Robert Kimble, Republican,
of Allegany who said it should be
amended to give "the best, most
competent. most efficient persons
State jobs.
After J. Milton Patterson. State
Public Welfare director, mentioned
the veterans priorities. Mr. Kimble
and Senator Stanford Hoff, Repub-
lican, of Carroll joined in declaring
the Maryland law probably is too
generous.
Senator Kimble said it is possible
for a Maryland veteran to fail an
examination and yet be appointed
to a position for which other non-
veterans have qualified with high
marks. He explained the Maryland
law gives a veterans five points to-
ward his examination mark and
once he is passed he is put at the
top of the list.
Mr.. Patterson reported he was
having some difficulty in admins
tering" his department because of
the preferences.
Full Inquiry Urged.
Senator Kimble suggested the
merit system be looked into, saying
'1et's look at the political manipu-
lation ="
Senator Hoff compared the Mary
land law with the Federal merit
system which requires veterans to
first pass any examination before
receiving extra points. The veteran
then is given a standing on the list
compared with the other results,
and not necessarily at the top.
IF the Federal Government con-
siders just a five or ten point ad-
vantage proper. certainly we could
have very little ground to say 1t is
inadequate" Senator Hof said. Il
don't think that any veteran who
THINKS about it will raise hue and
cry because such deficiency is cor
rected.'
The Carroll County senator said
he was quite sure some radicals
will try to make the veterans be-
lieve that every right given them is
taken away"
He suggested the merit system
study be made without any public
ity. but later withdrew his objec-
ton to it and introduced the solu-
ton which sent it to the Judiciary
Committee.
Among the recommendations
made to the council by Welfare Di-
rector Patterson were elimination
of the Bureau of Child Welfare,
elimination of the authority for
training schools to pay board MEM
bers a $500 yearly salary as secre-
tary, and inclusion of the positions
of superintendent at the Montrose
School for Girls and Maryland
Training School for Boys in the