TAXATION AND FINANCE
In his second term, like the first, Governor Tawes regarded
the problem of providing additional services without increasing
taxes as his most serious task. The magnitude of this prob-
lem is sharply etched by the comparative figures of the 1959
budget—395. 5 million and the 1966 budget totaling $883
million. The rapid growth in population caused the demand
for more and better services in education, health, and public
welfare; these expenditures constituted over 80 percent of the
total budget. The Governor's goal of financing services with-
out new taxes was achieved with considerable difficulty. He was
forced to recommend an increase in income tax rates from
three to four per cent in order to finance a new program in
education. Fortunately, an improvement in state income per-
mitted the elimination of this rate increase. The Governor
supported the Cooper-Hughes legislation which provided a
method for relieving local governments from their heavy reli-
ance on the property tax. As this legislation never be. came
law the State tax structures was not changed during the second
term.
REMARKS, ROTARY CLUB OF FREDERICK
FREDERICK
September 30, 1964
Ralph Austin, Reverend Clergy, distinguished guests, fellow Rotar-
ians, ladies and gentlemen:
I have been looking forward to my visit to Frederick today with con-
siderable anticipation and delight as I always do. Not only have I been
accorded the pleasure of attending this luncheon but, later, I have
planned to spend several pleasant hours at the great Frederick Fair.
As all of you know, I have had the privilege of speaking here for the
past five or six years and my message usually has concerned itself with
the affairs of State government. I make no exception today for I would
like to devote the next few minutes to a discussion of a piece of legislation
that has been more misunderstood and more misinterpreted than any
other piece of legislation in my experience.
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