Evening star., 1955-02-26
|MckeIdin Hits
Tax Program
Substitute
Cites Objections to
Levy on Cigarettes
And Smaller SuIes
By Gene Goodwin
St1r Sieff Correspondent


ANNAPOLIS. Feb. 26.-Gov.
McKeldin today criticized a leg
isIative proposal to tax cigarettes
and lower the exemption on the
State retail sales tax from so
cents to purchases of IA cents.
He said the so-called Turnbull-
Boone tax program proposed to
the Legislature this week sis not
devised with a view as to what
the people would prefer" or as to
what would be the least burden
some on vast numbers of lower
income taxpayers"
Senate Majority Leader John
G. Turnbull and House Majority
Leader A. Gordon Boone. both
Baltimore County Democrats.
have recommended a 2-cent-a-
pack cigarette levy and restora-
ton of sales tax features repealed
by a 1850 special session Of the
legislature.
Would Tax Meals.
Under their plan. the sales tax
would be reimposed on soaps, de-
tergents and restaurant meals.
and the old 1-cent tax on retail
purchases from IA to so cents
would be restored.
The Republican Governor.
whose main answer to an antici-
pated State deficit of $29 million
next fiscal year is a penny in
crease in the sales tax this year
and so per cent increase in the
income tax next year, said he
had rejected the cigarette tax
idea in preparing his budget.
cigarettes already are heav-
lily taxed by the Federal Govern
ment, Baltimore City and Bal
timore County" he said.
Pointing out that Maryland
is a large producer of tobacco,
he said he was "averse to Great
ing any hazards-even if only
mental hazards-for any part of
our economy"
The Governor said he is un-
alterably opposed to reimposi-
ton of the 2 per cent sales tax
on soaps and detergents, which
would bring the tax burden
back to the housewives daily
purchases in the grocery store"
Groceries are exempt from
Maryland's sales tax.
Starting collection of the sales
tax at IA cents, Mr.. McKeldin's
statement said, would make a
nuisance tax out of the levy.
This would mean the handing
out of extra pennies daily to
children for their minor pur-
chases." he said. "A penny tax
on a 14-cent purchase would be
a tax of TIT per cent. The tax
on a 15-cent soda or double-dip
ice cream cone would amount
to 62/3 of the per cent of the
cost"
The sales tax on restaurant
meals was one of the most ag-
gravating sorepoints in the tax
as it was originally constituted
in 1947, Gov. McKeldin said.
Sees One Class Burdened.
There are many citizens who
eat all of their meals in restau-
rants" he added. For them
the imposition of sales tax could
amount to 8 cents, 10 cents or
more each day-or $29.20 to
$3.50 or more in the course of
year-a decidedly unfair bur-
den on one class of taxpayers"
The Governor also criticized
the Turnbull-Boone plan for
what he termed mot looking
ahead" His program would give
the State government a surplus
of $50 million at the end of
fiscal 1856. which he maintains
will be needed for schools in
fiscal 1857.
He said the majority leaders
bill does not take into considera-
ton that about $14 million in
homecoming revenues will re-
suit from the proposed initia-
ton Of a payroll withholding
system for collecting "State in
come taxes this July /. The
Turnbull- l-Boone plan accepts
this Withholding feature of the
Governors tax program.
Il am of the firm conviction
that it is wise and best for all
concerned that we settle our tax
problems now and not leave the
certainty Of tax increases and
the uncertainty of revenue
sources hanging over the people
for next year and the years to
come" Gov. McKeldin declared.
M7AA