Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-02
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Differences Go
To Conference
Both Senate and
House Bills Start
Withholding il July
BY GENE GOODWIN
star star Correspondent

ANNAPOLIS, April 2.-Senate
and House differences over the
question of what taxes shah 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 q deficit of
an estimated sci million or more.
The House plan involves in
the State income tax
rate on ordinary income from q
2 to a 21a per cent rate, and
on corporate income from { to
5 per cent.
Both plans propose q payroll
Withholding system to start In
July. The Senate would estab-
lish personal and dependent de-
auctions at fiat $500. The
House proposes 5000 deductions.
The taxpayer now is allowed de-
auctions of $1,000 apiece for
himself and his wife and $500
for each dependent,
s28.4 Million Needed
The object Of both plans is to
raise an estimated $28A 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
that will result from
telescoping of a year and q 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 SS.6
million from the local suhdiVi-
sions.
The House plan would ALLOW
the cities and counties to- share
in the withholding windfaM.
Meanwhile, the Senate moved
up for final passage 1 $e.2aIiil-
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, andsWere
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 a $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 Phoebus,
Republican, of Somerset County
to slice $590,000 off a proposed
$2.090,000 appropriation for a
new library on the College Park
campus of the university.
The subcommittee already had
trimmed that item by $110, 900.
The House moved along its
bill setting the new State real
estate tax for calendar 1866 at
10.9 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 a bill bringing
Maryland's movie censorship Law
into line with recent Supreme
Court decisions and excluding
newsreels from State censorship.
The Senate last night, on q
19-to-7 vote. passed Senator
Phoebus' familiar $50 million
war veterans bonus bill. The
bill is expected to get cool treat
ment in the House. where even
the enthusiastic bonus hackers
shy away from the Senator's
plan of taxing intoxicants to
finance the bonus.
Enacted by the Senate yester-
day was a $500 annual across
the-board pay increase for State
troopers, which would cost a
total of about 100000.