Evening star., 1950-02-07
Tax Cut Hearing
SET Tomorrow
ByLegisIature
Rent Control Decision
Moy Be Offered by
Committee Today
BY the Associated Press


The Senate Finance and House
Appropriations Committees called
a joint public hearing at 7:3O
pm. tomorrow on bills to allow
Virginians credit for income taxes
paid the Federal Government in
making out State income tax re-
turns. and to reduce wholesale
merchants license taxes.
The Federal income tax allow
ance, applicable to individual and
corporate income, would cut sew
eral million dollars from State in
come tax payments and offset in
part, at least, the increased rates
under the Tuck tax program OF
1948. Pending are duplicate bills
offered by Senator Frank S
Richeson and Delegate w. II
Adams, both of Richmond City
Public Support Claimed.
The bill to reduce wholesale
merchants taxes from 20 cents to
13 cents per 500 on purchases
above $4,000 a year, also was
offered by Senator Richardson.
The Richmond legislators con-
tend that it is double taxation for
the State not to permit credit for
taxes paid the Federal Govern
ment on income. Mr.. Adams said
he had received 100 letters in two
days in favor of the tax change.
There was little of more than
routine nature on the calendars
of the two houses today. The
lawmakers were looking to the
House General Laws Committee
which might bring forth a de-
cision on the Boatwright bill to
abolish rent controls in Virginia,
subject of lengthy public hear
ing which filled the House cham
ber last week.
Ruling on Annexation Bill Due.
Also possible was a decision
from the House Committee on
Counties, Cities and Towns or
the Crockett bill which requires a
favorable vote of both city and
county in annexation proceedings
brought by a city. If the com
mittee should kill this bill, the
county boys'' in the House be-
lieve they have enough votes to
force it to the floor as they did
two years ago before it was de-
feated.
The two houses late yesterday
disposed of a major controversial
issue - though there was never
any doubt of passage-in approx
Ing Gov. Battles program for
$45,000,000 in grants, without
matching funds. for construction
of school buildings by counties
and cities. The bill, an emer-
gency measure, will be signed by
the presiding officers and the
Governor as soon as it can be en-
rolled.
The bill went to a conference
committee for a smoothing out OF
minor differences between House
and Senate, but no major changes
were made.
Segregation Bill Gains Backers.
Opponents of the State grants in
aid without matching funds as
serted that the bill marked a
change in the States fiscal policy
which would plague the General
Assembly for years to come in
that the localities would be back
every year with outstretched
palms.
The bill itself asserts that the
grants are to meet war-produced
emergency and are not to be con-
strued as establishing policy of
grants by the State in meeting the
normal school building construc-
tion needs of the localities. How
ever, Robert Whitehead of Nelson
said this was meaningless and re-
minded the House that the Gov
ernor has committed himself to
total Of $75,000,000 in grants
with $30,000,0 900 to be recommend
ed in 1852. Mr.. Whitehead said
he was supporter of the full
100000, but was for matching
funds.
It was reported today that ad-
ditional members would ask to
become patrons on the bills offered
In the House yesterday by Dele
gate Armistead L. Boothe of Alex
andria to abolish segregation on
public transportation and to es-
tablish a Virginia race relations
commission.
When offered yesterday the bills
bore the names of Mr.. Boothe. E.
Griffith Dodson, jr., and Julian H
Rutherford of Roanoke, George
M. Cochran of Augusta and John
II. Daniel of Charlotte.
Boothe Pleads for Bill.
The House heard a plea from
the chief patron, Mr.. Bootle, tc
make States Right measures more
positive and less negative. He
asked the members to show the
Assembly's determination to elimi-
nate such legal inequalities as
the Constitution of Virginia di-
rects us to eliminate" He asked
that the members show that
more faith can be placed in the
rock of the Legislature in Rich
mond than in the shifting sands
OF Washington"
Mr.. Boothe told the lawmakers
the bill to repeal segregation on
public transportation was not an
entering wedge" but could be a
final act" if they wished it. He
pointed out that it would moi
change the power of local governs
r11ents or segregation ordinances
Of local governments, nor change
the laws or police powers in dis
, orderly conduct. He said Virginia
had enacted magnificent anti
lynch bill under Governor. now
Senator. Harry F. Byrd
Realty Bourd to Meet
The February meeting of the