Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-11
Outlook Bleak
For TaxCuts
InMary|and
House Leader Says
1883 Levy Sloshing
Cont Be Repeated
By Gene Goodwin
SfoE SaaH coErespondent

ANNAPOLIS, Feb. 11.-Mary-
land taxpayers were warned
today that they should not ex-
pect any tax-cutting miracles
from the State Legislature this
year.
Delegate c. Awdry Thompson.
Democrat, of Dorchester County,
chairman Of the Of the House
Ways and Means Committee,
admitted: Its going to be ex-
tremely difficult to find enough
fat in the Governors budget to
have any substantial effect on
tax bills"
It was the House Ways and
Means Committee that cut SIG
million from the budget last
year and prompted reduction of
the State property tax to its
lowest in history. The COM
mittee also forced an upward
revision in the estimates of the
Governors revenue eStimatorS,
making possible a second con-
secutive is per cent reduction in
the State income tax.
Can't Repeat, He Says.
Mr.. Thompson said fatty that.
as he sees it now, it will be
impossible for his committee to
repeat that 1858 performance.
For one thing, he said, Gov.
McKeldin's 1888 million pro-
posed budget for next fiscal
year seems to be tighter than
last years. Although this
budget is about $18 million
higher than last years he pointed
out. all but about 81 million of
that increase is mandatory.
By mandatory, he means in
creaSeS required by law, such as
the higher teachers salaries de-
creed by act Of the Legislature
last year.
The Governors Board of
Revenue Estimates also seems to
have frightened up on its fore
casting as a result Of the
"brainwashing" it got from the
House committee last year. Mr..
Thompson said he is even q
little bit concerned that the
revenue estimators may have
gone too far the other way-that
they may be counting on more
revenue than the State actually
via receive next fiscal year.
Makes Some Assumptions.
But assuming that their esti-
mates are about right and
assuming that no new revenue
sources are uncovered, MIR.
Thompson said that, even If the
Legislature sliced of all Of the
81 million non-mandatory in
crease in the budget, it would
just barely have enough to con-
tinue the is per cent State in
come tax reduction Maryland
taxpayers have enjoyed the last
two years.
It is estimated that a IS per
cent cut on State income tax bills
due on April IS would cost the
State something over 81 million.
That's the reason Mr.. Thomp-
sons committee already is delv-
ing into ways of increasing State
revenues. He's named one. sub
committee to study a proposal
by Delegate A. Gordon Boone,
Democrat. Of Baltimore, to raise
the States share of horse racing
bets from 10 to Is per cent.
Another subcommittee will
screen any other revenue-rais-
ing proposals that come up, such
as one made in committee meet
ing the other day by Delegate
Roland B. Duke, Democrat, of
st. MaryS County. MIR. Duke
suggested that the State might
levy q small tax on soda pop.
Problem in Property Tax.
The State property tax pre-
sentS even a greater problem for
Mr.. Thompson, a 38-year-old
Cambridge lawyer, who has been
IN the Legislature since 1850.
That tax, which is now 5.67
cents on each 500 of assessed
valuation and which the Gov
ernor proposes to raise to 11.89
cents in 1855, is used solely for
the retirement of the State debt
lin other words, to pay back the
principal and interest on money
the State has borrowed over the
years.
The Legislature was able to
cut that tax last year by apply
ing surplus funds and some
money cut out Of the budget
toward debt retirement. The
1858 legislature. however, had
about $14.5 million in surplus
funds to play with by the time
they finished revising the fore
casts Of the revenue estimators.
This year. the eStimators are
figuring on q surplus of only
$3.2 million by this July 1, and
all that has been put back in
the. Governors proposed budget
for the fiscal year beginning at
that date.
On the $6.313 million assess
able baSe the State is expected
to have next fiscal year, the Leg
1slature would have to dig ur
about $500. 900 for each penny
Of reduction on the State real
estate tax rate.
Mr.. Thompson emphasized
however. that he and his COM
lnittee have q ''hard- listed" at
titude toward the budget and
that they intend to seek out ali
possible ways of cutting taxes
After all. this is election year.
Fulls Church Dance
A square dance will be held al
the Falls Church High School,
- ~.