Evening star., 1953-12-24
Outside Aid ,o7
|InForecastinq'''
Revenue Urged
Virginia Move vss
Asked as Delegates
Split on Tax Cut Act.
By the Assoeioted Press


the Legislature give the Cover
nor's staff a helping hand at
forecasting the States revenue
intake. No.
Delegates Walter Page. J, w.
Roberts and Toy Savage said
the Legislature should consider
obtaining the aid of outside
financial experts to help pro-
vide more accurate estimates Of
revenue.
Legislators Are POlled.
The Norfolk legislators voiced
their suggestion in an Associated
Press poll on the Byrd Automatic
Tax Reduction Act, which pro-
vides for State income tax cuts
whenever general fund revenues
exceed the estimates of State
budget officials by as much as
5 per cent. ''3
During the last three years,
estimates have been off enough
to give Observation-Disclosures
and corporations - some $40
million. ~
Critics say the law constitutes
a drain on the treasury and
usurps funds that are needed
for such things as mental hos
pitals and education.
Hence, the suggestion of Dele
gates Page, Roberts and Savage
that the Legislature retain flna11-
cial experts to try to produce
better estimates-thus leaving
more money in the treasury.
Their view envisioned retention
of the law, but with this modi-
fication. 28
rsg
Some Favor Repeal. "a
Twenty-nine others who par
ticipated in the poll favored
repeal. Two lawmakers Sug-
gested that the law be suspended
for two years to enable the State
to pour more money into mem
tai hospitals. a32
Thirty-seven legislators said
they believed the act should re-
main in virtually the same form
as now. The remaining 90
members Of the Assembly could
not be reached.
The results Of the poll in
dicated the law may be lively
topic of debate when the Legis-
lature convenes in Richmond
next month. 10
Some of the opponents took
the view Of Delegate Orby
Cantrell of Pound, who said the
chief beneficiaries are "the
heavy taxpayers, the big corpora
tions and large firms" a.5
! Senator Ted Dalton of Rad
ford, another repeal advocate
and recent unsuccessful Repub-
lican candidate for Governor.
cited the State Constitution as
saying no more taxes should be
levied than are needed. There.
fore, he contended, the tax law
assumes the Constitution will be
violated.
Seen Preventing Surplus.
The members favoring reten-
ton took the view that the law
is sound because it has done
away with the old method Of
conditionally appropriating and
prevents big surpluses from piling
up in the treasury.
Before the acts passage, the
Legislature provided appropria-
tions to State agencies and in
stitutions having top priority.
and appropriations to other
agencies on condition that the
revenue became available and
the Governor approved the re-
lease of the funds. 36-
Only a small percentage Of
conditional grants were approved
and the State consequently
found itself with large surpluscs.
It was from some of these sur
pluses. incidentally. that a good
| start was given toward Gov.
Battles $75 million emergency
school construction program in
1850. ..,f
Four legislators said they
didn't think the law would have
any effect If the Legislature met
every year, thus making it pos
sible to give closer estimates Of
revenue intake. Senator Byrd
himself is an advocate of annual
sessions for this reason. qs.r
Delegate Francis Gouldman Of
Fredericksburg said the allow
ance of State income tax deduc-
tions on Federal income tax pay
ments would probably provide
the same benefits for the indi-
vidual taxpayer. .a.ry.
Flat Reduction Asked.
Three lawmakers came out in
| favor Of a fiat reduction in
State income taxes as a replace
ment for the tax reduction act.
Delegate Armistead Boothe Of
Alexandria said the law should
be modified to insure it applied
only to true surpluses"-that is.
monies above the conservatively
determined needs and RESPONSE
bilities Of the commonwealth.
Delegate Felix Edmunds Of
Waynesboro favored modifica-
tionS from year to year to take
account changing economic con.
ditions. e
Legislators favoring repeal In.
cluded John A. K. Donovan, Falls
Church: Charles Fenwick. Ar
lington; Senator Dalton, OmeF
Hirst, Fairfax; Mrs. Kathryz
Stone, Arlington; Harrison
Mann, Arlington; John C. Webb.
Fairfax; Robert Whitehead Low.
ington; Henry B. Gorden, Char
lotteSville.
Those favoring retention in
cluded: George Aldhizer. Har-
riSonburg: Robert Button, Cul-
pepper; Senator Byrd. VIM
chester; Felix Edmunds, Wayr1es-
boro. ~
Those favoring modification
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