Evening star., 1955-07-24

reau report on the 1858 tax
picture, Maryland residents
were better of tax-wise than
residents Of all but seven other
States.
On b strict per capita basis,
State and local taxes nation
ally averaged $l56.S8 that year
while the per capita taxes paid
Maryland were $143.53.
Taking into account the va
riances In per capita income.
however. Maryland residents
paid State and local taxes Of
$76.83 per $1,000 income.
Residents Of "a States paid
more than $99.41 and those In
40 States were paying more
than Marylanders.
The job facing the Lee SUBJ
committee would be difficult
even under the most favorable
circumstances. The situation
is worsened in Maryland be-
cause the State has a fairly
well-balanced tax program.
Soak Nobody Proerom
The State. generally speak
ing. has neither a soak-the.
rich nor a soak-the-poor pro-
gram. Mr.. Lee feels after
spending hundreds Of hours
studying the fiscal picture.
AS an example he cites
Maryland's income tax law
which calls for a fiat 2 per
cent rate on all taxable earned
income. A graduated income
tax is of the so-called soak
the-rich type.
Maryland's retail sales tax,
on the other hand, providing
for exemptions for all foods
and medicines and all pur-
chaseS under so cents, is well
tempered to avoid severely
hurting the little man.
/ Both of these obviously are
being considered in any new
tax program since they pro-
vide for a substantial portion
Of the State revenue. The sales
tax this year will bring in
more than $36 million and the
income tax well in excess OF
$50 million even discounting
the windfall.
Gov. McKeldin proposed
increases last January in both
these taxes but the legislature
delayed such action until it
had more time to study the
entire fiscal setup.
One plan to increase the
income tax rate from 2 to 8
per cent would bring in an ad.
ditional Sits million. A pro-
posal calling for o graduated
tax Of from 2 per cent on the
first $1,000 Of taxable income
to 6 per cent on all over $10,-
600 would produce slightly less.
Increasing the sales tax from
these taxes but the Legislature
2 to 8 cents on the dollar and
reducing the taxable purchases
to amounts over 26 cents would
add $l8 million to the treasury.
Other Areas Studied
The committee, however, is
not confining It's probing to
these two major fields.
Mr.. Lee is staying up nights
digesting books on taxes Inn
posed in every State in the
Union.
One group which is due for
q going over by the committee
is the out-of-State trucking
firms whose big semitrailers
wheel through the State With
out even tasting Maryland.
taxed gasoline. Both Della
ware and Pennsylvania to the
north get their business be-
cause OF lower gasoline taxes.
On the south. the truckers
have no reason to avoid buy
ing gasoline at Virginia tax
prices. Virginia has a gasoline
use tax which discourases
such State hopping as occurs
In Maryland. The system is
being studied by the Lee
group.
Under the system Virginia
requires trucking firms to re-
port their gasoline purchases
and mileage Travelled in Vir-
ginia. II. on a mileage basis,
the trucking firm fails to buy
gasoline needed, the State
simply levies a use tax to
make UP the difference.
The group also is compar-
ing taxes between the States
to determine whether other
businesses are getting a free
ride In Maryland. Some which
are coming under scrutiny are
the aviation and beer, wine
and liquor industries and
building and loan associations.
Possible tax eliminations
also are being considered in
cluding the State tax on real
property. Legislators for
several years have talked OF
leaving this field exclusively to
local Jurisdictions.
The Lee group expects to
report to the full committee
by mid-September in simply
fact finding form. Recon-
mendations are not likely
from the subcommittee.
Senator Northrop then will
lead the full group in prepara.
ton Of o report for submission
10 the Legislative Council
which recommends measures