Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-01-29
Tax Reduction
Plan Supported
In State Senate
McKeIdin Opposed
To Automatic Cuts,
Confidunts Soy
By Gene Goodwin
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The bill was introduced in the
Senate yesterday by the IL Dem
ocratic Senators who tried un.
successfully at the opening oil
the current General Assembly tc
install one Of their men as SEN
ate president. They lost when
the Republicans stepped into the
deadlock and threw their votes
to Senator George w. Della OF
Baltimore for a second term il
the chair.
The bill provides that Mary.
land taxpayers would get an au-
tomato income tax cut when q
substantial surplus in State gen.
eral funds was built up.
Return in Form Of Credits.
The controller, each August 1
starting in 1854, would figure
out how much general fund rev.
enue receipts in the preceding
fiscal year had exceeded origi-
nal estimates. II that amount
turned out to be 5 per cent OF
more of estimated income ta1
collections in that year, the total
would be given back to the tax
payers in the form of credit on
their next income tax return.
The plan is patterned after
the Virginia law passed in 1850
1t gives Virginia taxpayers an
automatic reduction in their tax
bills when revenue exceeds esti-
mates by percentages specified
in a complicated formula. I'm
der that law, Virginians got a
20 per cent cut on their 1851
tax bills, and a 9 per cent cut
last year.
Gov. McKeldin is said to be
concerned about adapting such
a plan to Maryland because he
feels it would hinder the execu-
tive in plotting State expendi-
lures.
Would Fool Taxpayers.
He is reported to be in sym
pathy with this general criti-
cism Of the plans:
It would be foolihg the tax
payers to give them an auto
matte tax cut because they un-
doubtedly alwould have to pay
higher taxes if surplus funds
cannot be used to balance the
budget, as they have been for
the last two years.
One Of the Governors fiscal
assistants, James G. Rennie,
State budget director, said the
Virginia-adapted plan would
mean either a tax increase or
a drastic cut in the State serv-
ices.
But many lawmakers, includ-
ing those Of the Governors own
Republican Party do not share
his concern about the scheme.
In fact, two of the State SEN
ators, John Raymond Fletcher,
Republican. of Prince Georges
and Senate Floor Leader Louis
L. Goldstein. Democrat, of Call
vert-said they had intended to
introduce similar bills their.
selves.
Support in House Seen.
The measure also can be ex-
pected to pick up considerable
support in the House, whose
members this year, are, if any
thing, more economy-minded
than the Senators.
The II sponsors of the legis-
lation, who need only four more
votes to assure its passage in the
upper chamber, are Democratic
Senators Sybert of Howard,
Barton Of Baltimore. DIPPED of
Baltimore. McNabb of Hartford,
Malkus of Dorchester, Melnicove
Of Baltimore. Phipps of Anne
Arundel. Preston of Baltimore,
Shehan Of Talbot, Turnbull of
Baltimore and Turner Of Queen
AnneS.
Other measures introduced in
the legislature yesterday:
I. A bill by Delegates Edward
r. Milanicz and James j. Silk,
Democrats, Of Baltimore, for a
$50 million veterans bonus. It
was the same bill they spon-
sored without success last year,
providing for payments up to
$500 for veterans of both world
wars, depending on length and
place of service.
2. A bill by Delegate E. Layton
Riggin, Democrat, of Somerset
County. to lower the voting age
from 81 to 10 by amending the
constitution.
Bills ON Tax Deductions.
3. Two House bills-one by
Mr.. Riggin, the second by Balti-
more Democratic Delegates
George c. Wagner, Joseph v.
Mach and Edward L. Reisinger-
to allow Marylanders to deduct
Federal income taxes in calcu-
lating their State tax. The Balti-
moreanS would set a limit of
$500. MIR. Riggin provided no
ceiling.
4. Senator Goldstein renewed
his campaign to abolish the State
property tax with a twice-de-
feated bill to prevent the State
from financing bond issues with
that levy after next July /. Bond
issues already sold which de-
pend on the tax for financing
would delay eventual abolition
of the tax for possibly Is years.
Gov. McKeldin'S new budget
proposes increasing the State
property tax from about 6 cents
to about IL cents for each 500
of assessed valuation.
S. The same II Senator'S who
proposed the automatic income
tax cut tossed in a bill to deduct
household fuels from the States
2 per cent retail sales tax. That
measure was introduced in the
House Tuesday.