NEWS CONFERENCE 543

A. Yes, I think economy is in order in the budget but shortsighted
pennywise economy that's going to be pound foolish is not going to
be my objective.

Q. Governor, Montgomery County is going to push its income tax up
to 50 percent.

A. I heard that, yes.

Q. I'm wondering, if this trend continues—that makes it six counties
to do so—do you think that the existing new graduated income tax law
should be changed sufficiently to continue to fund the increased de-
mands for services at the local and State levels?

A. No, I don't think we're going to require a revision soon, but first
of all the law provided that very flexibility that we thought would be
needed to give the subdivisions something other than the property tax
to turn to. Some of them are and some aren't turning to it, and I
think there are over half who adhere to the very minimum 20 percent.

Q. The trend seems to be that more of them are jumping to the
maximum fairly soon after the law was enacted.

A. I disagree with your analysis because I don't think there are over
four subdivisions that have gone to 50 percent, four or five.

Q. Montgomery makes it six.

A. Well, that's certainly not a majority.

Q. Well, Governor, you don't see a trend at all?

A. No, I don't see a trend. And I would guess that if you ask the
County Executive of Baltimore County, whose philosophy of taxation
may be a little different than that of the County Council in Montgom-
ery, he would tell you that he has no intention of increasing his income
tax out there. I may be wrong, but I would guess that's probably what
he would tell you.

Q. Do you anticipate that within the next four or five years that there
will be any need for change in the graduated income tax?

A. Not in the next four or five years, no.

Q. Governor, recently the Department of Economic Development put
out a two page news release, most of it describing the advantages and
virtues of one new motel in Baltimore and one in Annapolis, talking
about such things as valet parking, etc. Do you approve of this?

A. I approve of it if it's handled in an impartial sense so as not to
prefer one competitor in the private sector against another. We have a