Evening star., 1950-02-02
Assembly Gets
Record Budget,
Tax Cut Plans
Republicans Attack
Proposal to Reduce
Income, Realty Levies
BY J. L. MichueI
Speeiol Correspondent Of The Sfor

land lawmakers today were study
ing proposal to reduce taxes and
at the same time, approve the
largest budget in the States
history.
The program was submitted yes
terday by Gov. Lane when the
General Assembly convened fol-
the first time in annual session.
In a 40-minute speech before
a joint session of the House ano
Senate, the Governor asked fol
approval of a 1851 budget total
ing $143,066,052, or 1881 soc
more than the 1850 figure. -
At the same time, he suggested
that the State real estate levy be
cut to 6 cents on each $1O0 val
uation and that income taxes be
lowered.
Revenues Estimated.
The income tax program would
increase from $400 to $500 the
allowance for dependents ano
would double personal exemptions
of persons IS years old or over
It also would allow persons with
up to $4,000 investment income
to file returns under the optional
method. This would permit re-
duction from the present per
cent rate to per cent.
Gov. Lanes estimate of 1851
revenues was s137.6l9,937, where
as expenditures were listed at
s143,6O1, lis.
To make up the $5,981,177 diff
ference the Governor proposed
use of most of $6,456, ,64217
State surplus expected to be on
hand when the fiscal year begins
July /.
Election minded Republicans
Immediately assailed the plan.
- Campaign Maneuver Charged.
Senator Stanford Hoff of Car
roll County. Republican State
chairman, and Senator James B
Monroe of Charles County, chair
man of the party's Steering Com
mittee, charged that the use OF
the treasury surplus was moth
ing more than a scheme to use
the accumulated funds for cam
paign purposes"
Its an election-year dodge,
they declared, "and if it works
there will be no way tax reduc-
tions can be continued in subse-
quent years"
A G. 0. P. caucus held before
the session opened unanimously
approved raising from $400 to $500
exemptions for dependents and a
slash of the tax rate on unearned
income. This rate, they contended
should be per cent on the first
$4,000 of income instead of the
present per cent. After $4,000
the rate would advance to 5 pei
cent.
Senators Hof and Monroe said
the Governors plans for tax re-
ductions do not go far enough ano
that they hope to find way tc
trim the budget to a point where
income taxes can be eliminated
Pumphrey Praises Message.
House Majority Leader Leroy
Pumphrey, Democrat, of Prince
Georges County termed the Gov
ernor's message very good"
He added: IT regret the con-
slant increase in welfare funds Or
that, we will have to stop some.
where. The board will get 1853.
887 in 1851 or 1894, ,108 more thar
in 1880"
The Republicans withheld deci-
sion on other budget proposals ane
named Senator Roy Tasco Davi.
to head a five-man committee tt
study the budget over the week
end. The committee is to report
at a caucus Tuesday.
Another indication that the 30
day session will produce as much
politics as legislation came wher
the House battled for hours over
a Legislative Council proposal for
streamlining legislative procedure
The plan easily passed the Senate
and finally won in the House by a
57-56 vote.
Tidewater Bill Defeated.
Another council proposal to in
crease membership of. the Tide
water Fisheries Commission was
defeated, "a to %.
A total of 26 bills were dropped
In the Senate hopper and % ir
the House. Most of the measures
have been approved by the Legis-
lative Council.
Senator Edward Storm, Demo
crat. of Frederick County, said hi
would introduce a bill today tt
exempt his county from an ac1
passed in 1949 requiring bodies OF
INDECENT persons to be sent tx
medical schools for use in studie
and experiments.
THE bill was misrepresented,
he said. I'VE understood that i
applied only to bodies unidentified
or unclaimed
Gov. Lanes budget includes 6
$4,000 appropriation to covel
transportation costs of such bodie,
from the counties to a morgue II
Baltimore City.
Senator Storm said he alst
planned to introduce a "recipro.
cal gas tax bill' which will maks
the Virginia truckers scream"
The measure would require
Virginia trucks to buy their gaso.
line In Maryland for trips through
Maryland, or else be billed for tht
5-cents-a-gallon Maryland tax or
gallons consumed over Maryland
highways.
Senator Storm said his bill
would counter a similar Virginia
law which requires Maryland