The 2012 Special Session of the General Assembly convened on May 14 and adjourned on May 16. It didn’t take long to accomplish the task for which it was called by Governor O’Malley, raising Maryland’s income tax rate for 14% of the state’s residents. I opposed this tax increase. As I stated before, I thought this tax increase was totally unnecessary. To prove the point, the revenue budget approved by the special session has a $204 million surplus.
As far as I’m concerned, it’s unconscionable to increase taxes to produce a spending plan with a multi-million dollar surplus. And after five years of tax increases, only half of the $1.1 billion structural budget deficit has been eliminated.
Under the income tax increases, individuals who earn over $100,000 and couples who earn over $150,000 will pay one-quarter to three quarters of a percentage point more, depending upon their income. The top tax rate in Maryland will be 8.95%, tying with D.C. for the 4th highest income tax nationwide. The personal exemption will be reduced from $2,400 to $1,600 for single filers who earn between $100,000 and $125,000 and joint filers who earn $150,000 to $175,000. For single filers who earn between $125,001 and $150,000 and joint filers who earn between $175,001 and $200,000, the personal exemption will be reduced from $1,800 to $800.
Tax increases will be retroactive to January 1, 2012. According to the Tax Foundation, Marylanders bear the 4th heaviest state/local tax burden in the nation and pay a per capita tax of $5,218. People in our neighboring states fair much better. Virginia ranks 13th with a per capita tax burden of $4,392; Pennsylvania is 15th with a per capita tax burden of $4,190; Delaware ranks 17th with a burden of $4,091 and West Virginia ranks 44th with a tax burden of $3,034. Locally, only D.C. tops Maryland, ranking 3rd with a tax burden of $6,076. These statistics were compiled before the Special Session.
I cannot emphasize too strongly that every tax dollar taken from an individual is a dollar less that neither businesses nor the economy will see. Higher taxes make it less likely that small and local businesses will create jobs and invest in growth. No wonder the seventh annual report by Chief Executive Magazine ranks Maryland in 38th place among states that attract business location and expansion.
Between December 2010 and December 2011, Maryland added 22,000 private sector jobs – a 1.1% increase in private sector jobs. The national private sector job growth was 1.8%. Any way one looks at it, Marylanders are taxed excessively and that excessive taxation depresses the economy and job growth. While this increased tax plan was passed over my objections, I am proud to have stood with members from both sides of the aisle and voted against it. Enough is enough!
Also of note, using the same resource (Tax Foundation) they determine Maryland is the 9th worst tax climate for business (42nd best). Our neighbors? Dealware: 12th best. Pennsylvania: 19th best. Virginia 26th.
Thanks for your comments David, but I served under Governor Ehrlich for four years. While that is a popular rumor, I can tell you it isn't true. Governor Ehrlich inherited the same mess that Governor O'Malley did when he was first elected. We all did. I'm not saying I agree with either Governor on how they raised revenues, but I just want to point out that there has never been a, "surplus." But please don't take my word for it... Governor Ehrlich’s budget secretary, Cecilia Januszkiewicz, admitted to the Senate Budget and Taxation Committee that the entire amount would be consumed just to “come close to balancing” the FY 2008 budget. [Testimony of DBM Secretary Cecilia Januszkiewicz, February 2, 2006] But that is obviously old news. I will continue to oppose tax increases.
There's this foggy memory of the Ehrlich years. Fact is, Ehrlich increased State spending over his 4 years more then O'Malley has in his years. O'Malley is getting killed as much for timing (Marylanders are at the breaking point) as much as anything. Look up the State budgets and the total amount of spending year by year. They are accessible on the state website. Additionally, from a state health standpoint, Maryland is still very healthy. Debt to GDP ratio of about 12%. The state is nowhere NEAR being run into the ground. However, it's residents are pretty much getting taxed into it. There's no debating this.
The tax happy idiots in Annapolis just don't care. And there is no one to stop them. I think we all need to come to the uncomfortable realization - Maryland has changed. It is not the State we used to know. Baltimore and surrounding areas have gone from a hard working blue collar town - who used to go to 33rd street every Sunday to worship the Colts - eat crabs - drink natty boh - to a State of have and have nots. We don't have the plants anymore - we have freeloading handout seeking individuals and then greedy corporate execs living in Howard County, The rest of us - the remaining working middle class - are left to pay the lions share. Delegate I tell you this - Maryland better hope the economy and housing market does not turn any time soon because when it does I can't tell you how many middle class tax squeezed people will leave. They will sell thier houses and just leave and then I would love to see how the blood sucking Democrats will fund thier useless projects. This is not aimed at you - as I really think there are politicians in the State that care GO MCDONOUGH) but I just hope the jerks in Annapolis know what they are doing. Tell OWEMalley there are a few taxes he left out - try a Ravens tailgating tax - a crab tax - a boardwalk tax - a skeeball tax - a horseracing tax - and a air tax. Good luck
@ANT- As far as the noise at Perry Hall Shopping Center, I will look into it. I can tell you that you are not alone neighbor, as I live directly behind McDonalds and the KFC on Belair Road. We have the same issue.
It's supposed to be this way, but as Del. Bromwell mentions, it's not black and white within the parties.
It's hard to believe with all of the hyper-partisanship going on today, I know...
In fact, the banking system is MORE broken and subject to another crash then it was before. The Facebook fiasco is just another example of how broken things are. It would be a LOT easier to go back to stomaching Republicans if they weren't so hung up on pacifying the wealthy. I find it comical when Republicans talk about President Obama promoting class warfare. Republicans have been more stealthily executing class warfare for decades now. Although these days, they are subtle about it at all. Class warfare is real. It's happening in Northern Africa. It's happening in the Middle East. It's happening in countries throughout Europe. It's going to happen here. ...
Then, you look at a 2+ party system, and then you see the warts those have. People think our government is divided, they barely hold a candle to some other countries. It's unfortunate, but you know what they say about power: It corrupts. Conceptually, the best I can think of is inverting the scale of government a bit. Making local governments responsible for more. Not quite confederation-like, but you get the idea. Local policies are generally more easily actionable then national. ...
There's two ways to attack the illegal immigrant problem from a job specific perspective. To clarify: I am strongly anti-illegal (emphasis, illegal) immigrant.
Wouldn't want to cut into that company profit now, would we? Nah, my wife needs a new yacht.