Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-09
Virginia House
Gets Bill 10
Halt Tax Credit
Committee Approves
81 Million Carter
PIon by l0-7 Vote
By the Associated Press

The Carter bill to shelve income
tax credits and make an addi-
tional 81 million available for
general appropriation won 10 to
7 approval in the Virginia Legis-
latu1e's House Finance Commit
tee yesterday.
Action on the hotly-contested
issue came at the end of a pro-
longed public hearing at which
spokesman pulled out all stops
on both sides of the Byrd in
come tax reduction law, which
the Carter bill would suspend.
The bill now goes to the House
floor.
The Byrd Act was described
by opponents as beneficial
mainly to a few large corpora
tions and big individual income
taxpayers. and as a blockade
against the use of surplus mon
ey for the building of needed
capital improvements at State
institutions.
On the other side the argu-
ment took the line that the Byrd
Act was Symbol of Virginia's
fiscal sanity" and the biggest
selling tool the State possesses
in attracting new industry.
Calls Act Improper.
But Delegate Armistead Boothe
OF Alexandria, main supporter of
Delegate Stuart B. Carriers bill
at the hearing, said it was wrong
to lure new industry to Virginia
with the promise of tax reduc-
tons when ultimately the build
ing needs of the State must one
day be met.
He said the Byrd Act had &C
CELEBRATED the demise of the
States historic pay-as-you-go
plan of financing and added:
THE day will come when Vir-
gina will have to face up to cap
ital needs and will have to i'm
pose a sales tax or bond issues.
The retention of the Byrd law
Will speed this evil day"
Senator Harry F. Byrd, jr.,
was on hand to fight the Carter
bill. which he said would have
the effect of repeating the tax
law he authored in 1850.
Senator Byrd scontended the
taxpayers have an equity In the
81 million earmarked for tax
reductions in the present ap-
preparation bill. He said adop-
ton OF the Carter bill would be
like stopping payment on a post
dated check the 1852 Assembly
gave the taxpayers with the
understanding they would get
another reduction if general
fund revenues exceeded budget
ed estimates by S per cent or
more.
The 81 million surplus antici-
pated for the close of the States
business June 80 would entitle
corporate and personal income
taxpayers to an II per cent re-
duction. Income taxes make up
slightly more than half of the
general fund.
THE principle at stake is
more important than the dollars
and cents aspect of the matter"
Senator Byrd told the hearing.
Compton Prevails.
The committee returned to its
small basement committee room
after the hearing in the House
chamber. There, DR.. Walter c.
Elliott. delegate from Lebanon
and a member of the finance
committee. moved that action
on the bill be deferred.
But Delegate E. c. Compton
voiced a substitute motion that
the bill be reported to the
House floor.
And then the committee got
some advice from DR.. j. c. Wit
ten, 73-year-old delegate from
Tazewell.
Action has already been post
poned to let the public have its
say" DR.: Witten observed.
Those who want to suppress
this legislation are not. doing
Senator Byrd a favor, Rather you
are doing Byrd an injustice.
IF you keep this bill from
going to the floor it will be the
sweetest music to Francis Pick
ems Miller (anti-Byrd faction
Democrat who ran against
United States Senator Byrd in
the 1852 primary, the labor Or
CARNATIONS and Mr.. Republican
as represented by Ted Dalton.
Why, Dalton (who lost to Gov.
Stanley in November) could
make an entire campaign on this
one thing"
The vote then was taken on
Mr.. Compton's motion. The re-
suit:
For the Carter bill QO): Dele
gates r. Whitehead, Witten,
Walton, Elliott, Pendleton, Gre
CORY, Mackenzie, Wampler,
Compton and Allen.
Against reporting it Cd: Dele
gates Hutchens, cha rman;
Cooke, Cleaton, Tucker, Collins,
Wheatley and L. D. Phillips.