Special Session Round-Up for Tuesday
Maryland's three-week special session came to an end shortly after 2:30 a.m. on Monday. Maryland lawmakers raised the state's sales, corporate income, tobacco and vehicle titling taxes, writes The Posts John Wagner. "This is the boldest move, the boldest action, on the part of any governor I've served with," said Senate President Thomas V. Mike Miller Jr.
Republican leaders said the special session will be remembered mostly for its frantic pace and for the largest tax increase in Maryland history, says an article in The Post. Common sense and reason went out the window just to give the governor a victory," said Senate Minority Leader David R. Brinkley (R-Frederick). "I think this whole thing has been a debacle, and taxpayers are stuck holding the bill."
Here is a selection of news and links from around the web that supplement The Post's coverage.
Republicans accuse Democratic lawmakers of not allowing ample time for legislators or the public to consider the tax increases, reports the Associated Press. "The entire process has been flawed," said Senate Republican Leader David Brinkley of Frederick.
What will be the fate of the slots referendum? "I believe slots will be soundly defeated by Marylanders who care about everyone and recognize the fraud slots would perpetrate upon them as they enrich the rich at the expense of the poor without any net benefit to the average citizen," wrote Reisterstown resident Gary Gamber, in a letter to the Baltimore Sun.
"The set of tax increases probably hits businesses between the eyes more forcefully than it does any segment of our society," says Anirban Basu, principal of the Sage Policy Group Inc., in a Daily Record article. Out of the $1.4 billion O'Malley's tax package is expected to raise, the Maryland Chamber of Commerce says about $800 million will come from businesses.
Will an expansion of sales tax to computer businesses create a competitive disadvantage for Maryland?. "This tax will certainly encourage Maryland IT users to outsource their computer service needs to companies located in Reston, Va., or even Bangalore, India," said Roger Cochetti, director of U.S. Public Policy for the Computing Technology Industry Association, in an article on the Gazette's web site.
Will Democrats face voter criticism in three years for supporting tax hikes? Democrats took "customary precaution" by increasing taxes three years before the next state election in 2010, stated an Annapolis Capital editorial. "Taxpayers are livid now, but will they still be angry enough in 2010 to take it out on Mr. O'Malley and his legislative allies? You might call that the $1.3 billion question."
With O'Malley victorious, some Republicans went home "disappointed." Sen. J. Lowell Stoltzfus, from Somerset, called the special session was "hugely" unsatisfactory, according to The Daily Times. "The taxes are just wrong," he said. "I think it set our state backward as far as economic development."
The health care reform bill passed during the session was lauded by health care activists, reports the Baltimore Business Journal. The General Assembly "passed a landmark health care expansion measure which takes Maryland to the top tier of states in health care reform," said Vincent DeMarco, president of Maryland Citizens' Health Initiative.
Finally, the University of Maryland's Diamondback quoted college President Dan Mote as praising the governor's actions, which tie college funding to the passage of the slots referendum. "The governor and the legislators were faced with a tremendous challenge," he said. "From the point of view of the university, it showed great support of higher education."
By Washington Post Editors |
November 20, 2007; 6:11 PM ET
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Next: Waxing Poetic on the Session
Posted by: The Truth | November 21, 2007 1:52 AM
"The Truth" or "The Skew"?
I am surprised he/she doesn't blame the BGE rate hikes on the overwhelming energy demands of illegal aliens. After all, if those tax-stealing, services-hogging illegals were not using light bulbs (probably illegally), then BGE would have surplus capacity.
In one breath, The Skew decries the burdens of new taxes on the people, but in the next breath, he/she describes the people as "too stupid" to understand their condition.
Sounds like sour grapes to me.
Posted by: PG'er | November 21, 2007 10:35 AM
As an independent contractor who provides "computer services" in the form of "custom programming," I'm forced to conclude that it's time for me to move. I cannot compete with other contractors who happen to live elsewhere, when my bid will have to include a 6% surcharge to my client to subsidize my choice of address.
Another well-thought-out 11th-hour no-input-from-the-taxpayers no-time-to-think-thru-the-consequences legislative moment from our elected officials. God bless the People's Republic of Maryland.
Posted by: tc | November 21, 2007 6:26 PM
Only the foolish didn't see this coming. O'Malley and the Democrats think that everyone is too stupid to know what's going on and if anyone does, they're betting that they'll forget come 2010. Don't let it happen again.
Posted by: Bamboozled | November 21, 2007 8:40 PM
Bamboozled, why wait until 2010. Let's go California on this nightmare and start a recall effort.
Not just O'Malley, but every senator and delegate that voted for it. Who's up for this?
Maybe if we stop going along like good sheeple the Democratic party machine that runs this state will finally wake up.
Posted by: tc | November 21, 2007 9:50 PM
The comments to this entry are closed.
The whole thing is a debacle. Consider:
1) At the same time the state is claiming there is a huge coming deficit, and that taxes needed to be raised, it also increased spending as well. You do realize this new Medicare type bill will pay primary for illegal immigrants right?
2) The tax burden is significantly higher for everyone. The typical Montgomery County taxpayer will end up paying $2-4,000 more in taxes per year.
3) It will get worse, since all the new spending assumed the taxpayers will approve slots. They won't. Thus, next year, more taxes! Because the voters are "too stupid" to vote for gambling.
4) Speaking of which, the bulk of the benefit from slots doesn't go to the state anyway. It goes to the Canadian company that owns the Maryland race track.
5) For poor taxpayers, their tax bill goes way up because of the Sale Tax increase. Whoops!
6) The governor pulled a slight of hand with his numbers and says that it will only affect "rich" taxpayers. Then he goes on to tell us that 55% of all Maryland taxpayers are rich! The truth is this hits middle class taxpayers very hard, because they get the double whammy of new sales tax and new income taxes.
7) All the "rich" people... you know, the families earning more than $100K, will really get socked because of the new tax brackets. An extra 1% of your income immediately goes to the state. Oh, and did you forget your county tax is another .5%. Whoops! The local governments get more, so they shut their mouths. Oopsy!
8) The president of Maryland should shut his frickin' mouth. Maryland University is expensive and non-inclusive of Maryland residents. If you go to Pennsylvania or Michigan, they get more residents in the university at a lower cost to residents. Meanwhile, Maryland is increasing it's fees to residents faster than private universities are and a lot faster than inflation.
9) finally, how can we forget the BGE electricity debacle. That one has cost me $150 a month on top of these taxes.
I think our representatives are way out of touch. I urge you to contact them and let them know you think they need to go and that you won't forget in a few years. Because we are paying through the nose to live here and it's suddenly not looking like it's worth it.