Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-02
Conferees Take Up
Differences Today in
Tax-lncrease Plans
BY GENE GOODWIN
star stan Correspondent

ANNAPOLIS, April 2.-Senate
and House differences over the
question Of what taxes shall be
raised to balance Maryland's
record State budget next year
were to go to a conference COM
mittee of the Legislature today.
The Senate has a plan which
involves no tax rate increases
but which would leave next years
Legislature facing a deficit Of
an estimated $21 million or more.
The House plan involves in
creasing the State income tax
rate on ordinary income from a
2 to a ga per cent rate, and
on corporate income from 4 to
5 per cent.
Both plans propose a payroll
withholding system to start in
July. The Senate would estab-
lish personal and dependent de-
auctions at a fiat $500. The
House proposes 5000 deductions.
The taxpayer now is allowed de-
auctions of $1,000 apiece for
himself and his wife and 5000
for each dependent.
$2S.4 Million Needed
The object Of both plans is to
raise an estimated 1884 million
needed to balance a record 1863
million budget for the fiscal year
beginning July /.
The thorn of controversy be-
tween the two plans, both Of
which passed their respective
chambers last night, is the ques-
ton of whether the cities and
counties shall share in the extra
revenues that will result from a
telescoping of a year and a halls
income tax payments in one year
under withholding.
Under the so-called Sherbow
plan, counties and cities get a
share of income tax and other
State revenues.
The Senate would reserve for
the State all the windfall reve-
nues from Withholding, which
would divert an estimated $8.6
million from the local subdivi-
sions.
The House plan would allow
the cities and counties to share
in the Withholding windfall.
Meanwhile, the Senate moved
UP for final passage a $9.2 mil
lion State capital improvements
program. Cuts Of about $500, 900
were made by a subcommittee
under the leadership of Senator
Edward S. Northrop, Democrat,
Of Montgomery County. and were
accepted by the Senate last
night.
Campus Home Survives
The upper chamber beat down
an attempt by Senator Joseph A.
Mattingly. Democrat. Of st.
Marys to eliminate q $4,000
item for a home on campus for
the University Of Maryland pres
ident. The subcommittee al
ready had trimmed $4,000 from
that item as proposed in Gov.
McKeldin's original bond bill.
Also defeated was an amend
ment by Senator Harry Phoehus,
Republican, of Somerset County
to slice $4,000 off a proposed
| 100000 appropriation for a
new library on the College Park
campus of the university.
The subcommittee already had
trimmed that item by $4,000.
The House moved along its
bill setting the new State real
estate tax for calendar 1856 at
100 cents on each 500 of as
sessed valuation. That is the
figure that results from $1.2 mil
lion In cuts in the Governors
budget made by the House Ways
and Means Committee and the
Senate Finance Committee.
Branch Bill Signed
Gov. McKeldin last night
signed into law a bill barring any
new branches Of District build
ing and loan associations from
locating In Maryland after
June /.
He also signed q bill bringing
Maryland's movie censorship law
into line with recent Supreme
Court decisions and excluding
newsreels from State censorship