Evening star., 1950-02-26
Gov. Lane Signs
Cut
lin Income Tax
Act Goes Into Effect
At Once to Give Aid
In Lower Brackets
-
By the Associated Press

by |he AsSoCiCIed FFeSS
ANNAPOLIS, Feb. 25.-Gov,
Lane signed his $1.250,000 income
tax cut program into law today
as his appropriations bill neared
final passage.
Only few General Assembly
officers were present when Gov.
Lane wrote his name on the four
major income tax proposals his
administration whipped through
the Legislature.
The acts took effect at once
to give an immediate break to
families with old folks and chill
dren and to those who receive
small annuities.
New Benefits in Brief.
In brief. they extend these ben
efits to Marylanders filing their
l949 returns, due April Is:
Grant special $1,000 exemp-
ton to each taxpayer or spouse
who is IS or older. and. special
$500 allowance for dependents of
that age group;
Increase from $1OO to $500 the
limit on investment incomes for
taxpayers eligible to use The short
form tax return and its fiat 2 per
cent rate:
Increase deductions for depend
ents from $400 to $500.
The bills had skipped through
both houses with little difficulty.
Only one was amended. to pro-
vide a double deduction for AGED
dependents as we'll as the increase
in personal exemptions for per-
sons IS and above.
A Republican-backed bill to
permit deduction of Federal in
come tax payments has been fa-
vorably reported to the House but
the administration hopes to beat
1t when it comes up for final vote
there. - 49,.
Get Early Start Home.
Today's sessions ended by mid
afternoon to allow lawmakers an
early start toward home.
Delegates advanced the $l44,.
2o3,564 appropriations bill, al
ready backed by the Senate, with
out a murmur. They were ex-
pected to cast the final vote on
Monday.
The s143,557,3 1903 budget for tis-
cal 1851 and deficiency allowances
for the rest of this year con-
stltuted the main reason for this
30-day session. Whether subse-
quent even-year assemblies should
attempt to follow the same pat
tern was a source of House dis.
agreement. - : '-'sa5.- 'sa:,-,
The delegates argued back and
forth on two measures which
would redesign the short sessions,
now constitutionally limited to
oudgetary. emergency and general
welfare propositions.
Delegate Preston, Democrat, Of
Baltimore, sponsored one, to
schedule 60-day sessions in which
any matter could be discussed
every year. Delegates Burlington
and Tawney. Democrat, of Balti-
more. introduced the other, to
maintain 90-day odd-year ses-
sions as they are and limit rig.
idly the 30-day meetings to state
wide fiscal affairs.
Vote Put Off To Monday.
The House finally put off a
vote until Monday, but Majority
Leader Humphrey pointed out this
did not portend choice of one or
the other. He said the legislature
might just as easily continue the
present system-which Delegate
Preston had called "the monster"
created by l948 referendum.
Two fiscal study suggestions
were adopted and sent to the SEN
ate. They would set up an off,
session legislative committee to
watch over preparation of the
budget. then permit the House
Ways and Means and Senate FL
nance Committees to conduct
joint hearings on the budget dur.
Ing general assembly sessions.
The balance Of Gov. Lanes fis-
cal program won favorable action
IN the Senate Finance Committee
today.
Prominent among pending meas.
ures is one to push the real es-
tate tax rate down to six cents
on a $100. Another would autho-
rize the s3,872.700 construction
plan drawn up by the administra-
ton, to be financed by bond is
sues.