THEODORE R. MCKELDIN, GOVERNOR 2137
dividends to the extent that they represent earnings of the
corporation. Under the proposed amendment., amounts paid in
complete liquidation or dissolution of a corporation would
not be treated as dividends, even though wholly or partly com-
prising earnings of the corporation. Since the Maryland in-
come tax law does not provide for any taxation of capital gains,
this amendment would confer a special concession on one class
of stockholders, those in a liquidating corporation. Stock-
holders receiving a distribution of earnings as a dividend from
going corporations would continue to pay a personal income
tax on same.
Successive taxation of earnings as income to a corporation,
and again upon distribution, as income to a stockholder, is in-
herent in our tax structure, and no sound reason has been
advanced for the discriminatory advantage proposed by this
Bill to a select class of stockholders.
This Bill would appear to be particularly beneficial to the
stockholders of collapsible corporations. The Federal income
tax laws have recently been amended to restrict the tax advan-
tages of stockholders in such corporations, and no reasons
exists for relaxing this principle in Maryland.
I am, therefore, returning this Bill without my approval.
Respectfully,
THEODORE R. MCKELDIN,
Governor
TAXICABS
May 7, 1951
Hon. John C. Luber
Speaker of the House of Delegates
State House
Annapolis, Maryland
Dear Mr. Speaker:
I am returning herewith H. B. 138 without my approval.
This Bill as originally presented would have put Baltimore
County taxicabs under the jurisdiction of the Public Service
Commission just as Baltimore City taxicabs are and have been
under that jurisdiction. There may be merit in the proposal
to give jurisdiction to the Public Service Commission of the
licensing of taxicabs in both jurisdictions.
However, in the course of its passage through the Legislature,
the Bill was amended to change its entire character. As
amended, it means that taxicabs licensed in Baltimore County
in any number in the discretion of the County Commissioners
|