1969]                   OF THE HOUSE OF DELEGATES                     101

Individual Income Taxes

As noted before, there will be 14 months of receipts from employer
withholdings in the Fiscal Year 1970 due to the change from quarterly to
monthly remittance procedures for these withholdings to the State begin-
ning with January 1970. Consequently, this revenue will show only a
slight change in Fiscal Year 1971 when it returns to a normal 12 months
rate.

Tabulations of net Individual Income Tax receipts applicable to in-
come tax returns for the taxable year 1968 indicate that the General Fund
revenue from this source amounted to about $294,000,000.

The growth in the revenue from the Maryland income tax will depend
largely on economic developments as indicated by the GNP index. Follow-
ing is a comparative table showing the GNP trend as compared to the
trend of Maryland income taxes for current years.

		Maryland Individual	% Gr	owth
	GNP ($ Billions)	Income Tax ($ Millions)	GNP	Maryland Income Tax
Calendar Year 1965 .... Calendar Year 1966 .... Calendar Year 1967 .... Calendar Year 1968 ....	684.9 749.9 793.5 865.7	149.8 171.1 250.9# 294.0	8.3 9.5 5.8 8.9	13.4 14.2 46.6S 17.2

# Large increase due to change to Graduated Income Taxes in 1967.

It will be noted that Maryland Individual Income Taxes have shown
a considerably higher growth rate than the GNP. In 1968 this growth
rate was double that of the GNP. On the basis of an average 7% annual
increase in the 1969 and 1970 GNP, it is therefore expected that Indi-
vidual Income Taxes will increase by about 15% annually in those years.

The Calendar Year totals are as follows:

1967  Actual —$250,900,000 (Before 5% Credit)

1968  Actual —$294,000,000—17.2% Growth

1969  Estimate—$338,000,000—15.0% Estimated Growth

1970  Estimate—$388,000,000—15.0% Estimated Growth