Evening star., 1950-03-01
Sales Tax Boost
Tied 10 Voteon
G| Bonus Bills
MoryIonders Face
Decision on Levy
To Aid Veterans
By J. |. MichoeI
Speeioi S'or Correspondent.

ANNAPOLIS. Mar. MARY.
land voters may decide in the
November election whether they
are willing to add l cent to the
sales tax to finance a $l00 million
veterans bonus.
Barring a legislative trick, this
appeared likely today after both
Senate and House yesterday ad-
vanced two separate bonus bills
to third and final reading.
That means that showdown
votes are due before the Assembly
adjourns it's 30-day session to-
morrow.
The issue reached this stage
after a day of swift moves ano
counter moves highlighted by 9
declaration from Gov. Lane that
he would veto any such measure
lacking an acceptable financing
method.
Lane Stand Cited,
In his first statement on the
subject since he took the same
stand in 1949, the Governor sent 6
message to both Houses demand
ing that any bonus bill sent to his
desk stand on a specific flnancia,
basis"
Il cannot, as Governor" hi
said, consider any measure that
would have the effect of deludine
the taxpayers of this State into
believing that a bonus is possible
without additional taxation, ano
without advising them in what
form and to what extent that
taxation will be"
Each bill would give to 285 ,00C
veterans of both World Wars. ir-
respective of service rank, bonuses
averaging $500 each.
Both would be subject to ref
erendum.
Backers of the measures, after
hurried conferences with admin
istration leaders, said they be-
lieved the Governor would sign a
bill provided it carried sound pro.
visions for financing.
This apparently was borne ou1
later by a House vote approving
II to AZ, an amendment which
would add l cent to the present
2-cent sales tax. 1t was offered
by Mrs. Mary L. Mock of the
Wicomico County delegation.
Bills Provide Funds.
The Governor in his message
said both bills propose to dedi-
cate all revenues from the sales
tax in excess in $40 million. and
in the event such revenues are
not sufficient, provide for in
creases in the tax on real estate
property up to % cents per $780,
THE purpose of this message, "
he continued, "is to advise your
honorable body that as governor
I cannot consider any measure
which seeks to utilize funds which
have already been appropriated
for the support of schools. hos
pitfalls. and payments to civil divi-
sions of the State, or for other
essential purposes"
Calling the bonus serious
question: the Governor said
There is no guarantee that sales
tax revenue will continue at the
presently estimated $27.5 million
for the fiscal year 1851"
The message was made public
shortly after the Senate had
passed on second reading it's bonus
bill by Senators Harry T. Phoebus
Republican, of Somerset County
and Louis L. Goldstein, Democrat
of Calvert County.
Motion is Killed.
After more than an hour of ora
tory, the Senate killed a motion
to recommit the bill to committee
and tackled on an amendment by
Senator Stronger, Democrat, OF
Anne Arundel County.
The amendment advanced the
amount of the proposed bond is
sue from $89,998,800 to s125 mil
lion to include veterans of the
World War Il. AS originally
drawn, the measure only applied
to servicemen of the last war.
On the House side the situa-
ton was the same until an
a m n d ment blanketing both
World War veterans was adopted
by voice VOTE, It was offered from
the floor by Delegate John R
Reeves, Republican, of Montgom-
cry County.
A few delegates did not agree
with the idea that the proposed
Jump in the sales tax was a good
move If the bonus is to become
law. Delegate George G. McLeish
Democrat, of Prince George.
called it dodge"
THE idea is'' he declared, "that
the popular antipathy to the
sales tax will help defeat ths
bonus"
AS the bills stand today, House
and Senate versions differ, but
hackers say the Senate is expected
to adopt the $100 million HOUSE
bill which has American Legior
backing.
Both bills provide for payment.
of SIS a month for foreign ane
$40 4 month for domestic service
with q maximum of $500.
Davies Cites "Whisper."
In a dramatic speech, Senator
Roy Tasco Davis, Republican, OF
Montgomery County told his col
leagues some one" had whispered
In his ear, IF you send this bill
to the Governor you'll put him
on the spot"
Meanwhile, two bills completing
the administration program at