Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-27
Bill 10 Suspend
Automatic Tax
Cut Faces Fight
Stanley Needs Funds
To Fulfill Pledges,
Plans Author Says
By Alex R. Preston
S%ar star CorrasnopdAnf

By Alex R. Preston
Star star Correspondent
RICHMOND. Jan. 27.-A pro-
posal to suspend Virginia's auto
matte income tax reduction law
at a time when a newly elect
ed Governor is desperately seek
ing more money. to carry out
campaign promiseS-has brought
into the open the basic issue
likely to govern all of the Gen.
eral ASsembly's major decisions
before adjournment on March
Is.
In an attempt to recapture
about 81 million scheduled to be
credited to income taxpayers
bills next December, Delegate
Stuart B. Carter of Botetourt set
off a time bomb yesterday when
he introduced a bill to suspend
for two years the States widely
publicized, though controversial.
tax credit plan.
Byrd Plans Fight.
"I shall fight the Carter bill
vigorously and determinedly"
was the immediate reaction of
the laws proud author, State
Senator Harry F. Byrd. jr.. son
of the United States Senator.
II stand intellectually and
equivocally behind the automatic
tax reduction law"
Yet. Mr.. Carter, a supporter of
the conservative Byrd organiza-
ton, sees in his measure a means
of fulfilling the campaign pro-
gram of Gov. Stanley. who
needs, for one thing. at least So
million more to carry out his
pledge to increase teachers sal
aries. .-.
Senator John A. K. Donovan
of Fairfax, after learning of Mr..
Carriers bill. said: IT think it's
a wonderful thing for anyone
who has the time to fight it
through. I would like to have
done it myself. I've got the CUTS,
but not the time"
Senator Charles r. Fenwick
of Arlington, a consistent OPP
ponent Of the law, reserved COM
ment on the Carter bill, which
would not repeal the act. but
would suspend it for two years.
Former Gov. Battle, in submit
ting a STAB million budget before
his successor took Office last
Wednesday. estimated that
nearly 81 million would be
trimmed from taxpayers bills
both corporate and individual
next December.
By suspending the automatic
tax credit plan, this General
Assembly would get that 81 mil
lion to appropriate. In addition,
the next General Assembly, in
1856, would have the additional
money that would be trimmed
from the tax bills in 1855.
Gov. Stanley already is on rec
ord as approving the principle Of
the automatic tax credit law.
He indicated that he intends
to maintain a hands-of attitude
toward the Carter bill, which he
regards as matter for the
legislative branch to decide.
Gov. Stanley said he thought he
could attain his legislative objec-
tlves without altering existing
law, but he admitted he would
have to juggle some items in the
Battle budget.
Mr.. Carter noted that Gov.
Stanley will need more than So
million to carry out his campaign
pledge to raise the teacher salary
bracket from $2.000-$3,200 to
$2.400-$3, 500.
Money refunded under the
Byrd Act is of very little bene-
fit to the average taxpayer" Mr..
Carter declared.
Sees U. S. as Beneficiary.
He noted that in 1850, when
he had opposed the law, he fig
ured the average taxpayer got a
reduction of $2.48 on his tax
bill. but that big corporations
received the largest part of the
cutback.
Then, he added, 70 per cent
OF the money the big corpora
tons save" was taken by the
Federal Government as an ex-
cess profits tax.
THE greatest beneficiary has
been the Federal Government
and at the expense of the needs
of the State of Virginia" Mr..
Carter said.
State Senator Byrd, on the
other hand, saw an ominous
threat.
I'm my judgment" he said,
"the Carter bill, if enacted,
would mean the end of the auto
matte tax reduction law and a
gIlhSfaNfio1 incroocn IN thA too