Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-03
BY GENE GOODWIN
Star stan Correspondent.


ANNAPOLIS, April The
amount Of State tax increases
In Maryland next fiscal year was
being determined tonight by a
10-member Senate House confer
ence committee.
But 1t probably will be Monday
before the people Of Maryland
know how much of a tax burden
they will be called upon to bear.
The committee of five Sena-
tors and five Delegates was ap-
pointed late this afternoon to
iron out differences between Sem
ate and House plans for raising
the 1884 million needed to bal
ance Maryland's record 1863 mill
lion budget for next year.
It was generally agreed that
both chambers would accept
whatever compromise the COM
mittee should come up with.
"Only Scratched Surface
F.. The conferees met for about
two hours at dinner time, but in
the words Of one. I'VE only
scratched the surface"
They planned to meet again
at the close Of tonight's session,
but that would mean any plan
they agreed upon would have to
wait until Monday for accept
ance by the House and Senate.
Senate Majority Leader John
G. Turnbull and House Majority
Leader A. Gordon Boone said
they hope to complete 80 per
cent of the business of the
legislature before adjourning
late tonight. Monday. the last
day of the 90-day session, they
plan to devote to what they
called Cleaning up loose ends"
Some Combinations Ahead
Among the loose ends are
Senate confirmation of the Gov
ernor's major State appoint
ments. including that of Frank
jr., of Clinton, for Com
missioner Of Motor Vehicles and
Elmer Munshower for State Po-
lice Superintendent.
The tax conference commit
lee is not bound to accept either
Of the tax plans Of the Senate
and House. 1t can bring out an
entirely new plan or even sub
scribe to Gov. McKeldin's rec
ommendation for q penny in
crease in the sales tax this year
and a so per cent boost in in
come taxes next year.
Blair Lee Sd. Democrat, of |
Montgomery county. was one of |
the conferees. Others include
Delegates John M. Whitmore,
Democrat, OF Anne Arundel and
Senator James B. Monroe, Re-
Of Charles.
The Senate's tax plan involves
40 actual tax rate increases but
would leave next years Legisla-
;ure facing a deficit of an esti-
mated $21 million or more.
The Senate would remove two
TENS now exempted from the
ales tax, however-rented items
Ind materials bought out of
State because they are mot
eadily obtainable" in Maryland. |
House Would Raise Rate
The House plan involves in
.reasing the State income tax
ate from 2 to az per cent on
ordinary income and from 4 to 5
yer cent on corporate income. It
would remove the sales tax ex-
mption from rented items only
md standardize all gross receipts
axes on railroads and utilities
It a fat 2 per cent.
Both plans propose a payroll
Withholding system beginning
his July. The Senate would
over personal and dependent
to a fiat $500, the
louise to a fiat 5000. They now
re set at $1,000 apiece for tax
layer and wife and 5000 for each
dependent.
The Withholding system would
,ring in what are being termed
vindfall revenues because it tele-
copes income tax payments for
year and half into one year.
The big difference between Sem
tie and House plans is that the
louise would allow the counties
md cities to share in this wind
all and the Senate would let
hem have only what they would