Evening star., 1950-02-16
'Lane'sBudget
Studied
As Senate
Upper House Backs
Income-Tux Slash
Asked by Governor
Special Dispatch 10 The Sior

General Assembly, at the half
way mark of 30-day session,
got down to work today on Gov.
Lanes S143 million budget.
The House Ways and Means
Committee took up the task after
the Senate made clear yesterday
that administration income tax
cut plans will be approved sub
stantially as submitted.
Republican moves to keep more
money in taxpayers pockets
failed when majority party lines
held fast on all but one of the
Governors tax-cut proposals.
The upper house, after an
hours debate, passed to third
reading measures which would
increase exemptions of depend
ents from $400 to $500 and ad-
vance from 500 to $500 the
amount of unearned income tax
able at per cent. Unearned in
come over $500 would carry the
present per cent rate.
JOkcT SndTSeu.
COP leaders argued the latter
bill carried a Joker" If un-
earned income exceeded $500 in
any amount. they pointed. the
per cent rate would apply on
the total. They contended the
people believed the 2 per cent
rate would apply on the first $500
and 5 per cent would be due on
any amount over that sum.
AS it is. they declared. a tax
of $2505 would have to be paid
on unearned income totaling
S501.
A third tax bill doubling the
present $1,000 exemption for tax
payers over IS carried with a
COP amendment extending that
benefit to taxpayers with de-
pendentS in the same age cate
CORY. Six Democrats joined the
solid bloc of II Republicans in
tacking on the amendment.
That means" Minority Leader
Kimble said. that we have man
aged to salvage few crumbs for
the taxpayers"
G. o. p. Lose Amendments.
Republicans lost amendments
which would have made the 2 per
cent rate on unearned income ap-
plicable on amounts up to $4,000
and another providing the same
rate for amounts up to $4,000. An
other defeated amendment would
have cured" the ''inequity'' of
making the total, when above
$500. subject to the 5 per cent
rate.
During the debate, Senator
Storm, Democrat, of Frederick
County, said he believed the
amount of unearned income sub
ject to the 2 per cent rate should
be raised to $1,000. He said that
If the administration did not
make that provision, he would in
troduce such a measure himself
AS work on the budget began
In earnest. a move gained headway
to increase appropriations for hos
pitfalls throughout the State. A
hearing on the matter was to be
held today by the Senate Finance
Committee.
Many legislators, including
Democratic stalwarts. are dis
pleased that hospitals have had
1881 900 Topped off their requests.
Appropriations in the budget for
hospitals are the same as last
year in total, but some institu-
tions will receive more and some
less. The amounts allocated this
year were determined by use of a
new formula based on the cost of
treating INDECENT patients.
Turnbull Offers Bill.
A bill introduced yesterday by
Senator Turnbull, Democrat, of
Baltimore County would set up
legislative branches of the State
government in the counties. Un-
der the plan, county "legisla-
lures" would be established and
county commissioners would act
in executive capacities. The
measure would be subject to a
referendum.
Memories of Virginia hospital
ity IN recent "oyster war" con-
ference in Richmond brought a
resolution to the Senate yesterday
which would seek to return the
courtesies.
Senators Sothoron, Bailey,
Goldstein. Monroe and Phoebus
sponsored resolution which
would invite the Governor and
General Assembly of Virginia to
be guests of the Maryland Legis-
lature.
Another resolution by Senator
Phoebus, Republican. of Somerset
County, asks Gov. Lane to include
at least $4,000 in the supple
mental budget for the care and
education of the children of the
late Earl Lee Nelson. Mr.. Nelson
Somerset County waterman, was
killed last summer while beine
placed under arrest by a Virginia
Fisheries Commission officer.
District Heights Bills.
-Four bills to be introduced to.
day by the Prince Georges delega.
ton would revamp the Govern.
mental setup of the town of Dis
trict Heights One would divide
the municipality into five ward
and provide for election of com
missioner efrom each. The other
would specify procedure for direc
ton of the town government ant
establish election rules.
Another would simplify "papel
work" on Maryland-N National Cap.
ital Park and Planning Commits.
sion bond issues.
A measure dropped in yester
day by the county's delegate;
would permit Berwyn Heights t,