Evening star., 1953-03-01
Automatic Cut
In Taxes Hif
by MckeIdin
Times Too Unsettled, !,
He Tells Assembly:
Passage Expected
Ru Hknxlne AaEEMnn
By ChorIes |. Hoffmor
Stur SsoH Correspondent

by ChoTIeS l. Hoffmon
Stur Ssoff Correspondent
ANNAPOLIS, Feb. 28.-Gov.
McKeldin today told the General
Assembly times are too unsettled
to enact in Maryland the auto
matte tax reduction law.
In a prepared statement the
chief executive said, II do not
consider this a good time to en-
act an automatic tax reduction
law such as that which now is in
force in the Commonwealth of
Virginia"
An automatic tax reduction
bill, fashioned after the Byrd
measure in Virginia. however.
seems certain Of passage in the
Senate.
RevisiOns Due Tomorrow.
Pressed by the IL insurgent
Senators who earlier in the ses-
sion unSuccessfully tried to upset
the status quo leadership. the bill
Is due for some drastic revisionS
tomorrow.
Amendments to be tackled onto
the measure include provisions
for freezing the surplus in Au-
gust, 1854, at ST million. The
next So million of the budgetary
surplus would go for reducing
the real estate tax rate used to
meet obligations on the States
bonded indebtedness. This would
amount to about cents on the
rate.
; The remainder OF the surplus
would be used to cut the income
tax. A provision. however, would
bar any cut if there were not
sufficient funds to make 1t at
least 5 per cent.
The original tax reduction
measure would have applied all
the surplus to an automatic cut
in the income tax rate.
Senator Bernard S. Melnicove,
Of Baltimore City. said the in
surgent bloc had decided to at
tack the real estate tax first in
an effort to gain support of rural
area legislators.
Bill Gains Prestige.
Aided by the sudden acclama-
ton of the plan as splendid"
by Controller Millard G. Tawes,
the bill gained considerable
prestige rapidly last week.
Mr. Tawes, a candidate for the
Democratic gubernatorial nom-
ination, helped to draw up the
amendments.
The changes have brought
word from Senate President
George w. Della that he would
support the measure sponsored
by his party opponents. Major
ity Leader Louis L. Goldstein
of Calvert County, has promised
| quick action on the bill in the
powerful Senate Finance Com
mittee 80 we can act on it again
this session if it is vetoed"
Gov. McKeldin, however, in
his statement left himself an
"out." He said he was mot
closing the door" on whatever
action the legislature takes but
would study the bill carefully in
its final form before approving or
vetoing it.
Another insurgent leader, Sem
ator John G. Turnbull, of Balti-
more County, has introduced a
bill to put the Governor and a
man of his choosing on the
Board Of Revenue Estimates.
Governor Would Rum Board.
Such a measure would give the
governor virtual control of the
board which must estimate the
budgetary surplus. The board
has been under constant attack
this year by the II insurgents
for what they assert are its
conservative" estimates.
Senator Turnbull said his bill
was aimed at putting the re-
sponsibility for the estimates di-
rectly on the Governor.
The insurgents have been
making political hay this session
with their economy moves and
tax relief proposals. Buffeted
by the Senate group and the
House Ways and Means Com
mittee, the Board Of Revenue
Estimates revised upward by
$5.3 million its surplus figures
thereby making possible a Is
per cent cut in the income tax
and a prospective 2-cent slash in
the proposed 5.25 cent increase
in the real estate tax.
In his statement yesterday
Gov. McKeldin said the State
had not yet caught up with its
back log Of improvement Of
services. He added that Vir-
ginia-which has no bonded in
debtedness-also may not have
all the mandatory appropria-
tions Maryland must make nor
does it have the same obliga-
tions to the financial structure
of its political subdivisions.
Ford Appoints OfficiuI