Monday, May 21, 2012

Change Maryland Releases Updated Tax List Following Special Session

Change Maryland Releases Updated Tax List Following
Special SessionComes on the Heels of State Leading the Nation in Job Loss

Annapolis, MD - Change Maryland, a non-partisan grassroots organization, released an updated list of tax and fee increases from 2007 to 2012 that show levies have been raised  24 times with a $2.4 billion annual impact to taxpayers.  The tax and fee list comes on the heels of a dire U.S. Department of Labor April report in which Maryland led the nation in job loss.

“What happens when you have a monopoly that increases spending by more than almost any state in the nation and you raise taxes 24 times? You end up having the worst job loss in the entire country,” Change Maryland Chairman Larry Hogan said.

The fact sheet underscores a disturbing trend cumulative tax hikes have had on Maryland's economy.  Virginia's unemployment rate is a record 20% improvement over that of Maryland. The difference between the unemployment rates in Maryland and its primary economic competitor stands at 1.1% according to the labor department.  Maryland's rate is 6.7% while Virginia's rate is 5.6%.   In the four years of the Ehrlich Administration that differential averaged just .6%.

"Clearly we are falling further and further behind," said Hogan. "If we are to measure Governor O'Malley's performance by his own standards - jobs, jobs, jobs - then he has failed. These tax and fee increases are the reason Maryland had the worst job loss in the country last month and has been bleeding jobs to Virginia since O'Malley's been in office - nothing else explains it."

Virginia, under Republican and Democratic governors alike, has a long tradition of holding the line on taxes.  The results of these policies include the Old Dominion topping Maryland in every major business climate survey, attracting large corporations and encouraging small businesses to move across the state line.

Maryland's budget has grown $1.2 billion a year, on average - from $28.8 billion in 2007 to $34.7 billion in 2012.  While the Governor has claimed $7.5 billion in cuts during his term in office, the numbers simply don't add up.  The contrived "cuts" number is used to claim fiscal responsibility while raising taxes to support spending increases for politically-favored special interest groups.

"Gov. Martin O'Malley was not elected saying 'I'd like to drastically increase state spending and raise taxes on struggling Marylanders.' He ran on a false claim of fiscal responsibility, and voters had the wool pulled over their eyes," Hogan said. "All Marylanders -Democrats, Republicans and Independents -are paying the price through lost jobs and lower wages."

This most recent tax and fee list includes legislation passed in the special session of the General Assembly, which is estimated to raise $264 million through increased income, business, tobacco taxes and vital record fees.  The vast majority of these revenues are derived from raising the individual income tax which disproportionately affects small businesses structured as S-Corporations, Limited Liability Corporations and Sole Proprietorships.

The Change Maryland Tax and Fee fact sheet details measures ranging from the $603 million sales tax increase in 2007 to off-the-books measures such as the Maryland Transportation Authority - imposed $90 million toll hike last year.



Change Maryland Tax/Fee Fact Sheet:

Levyland - the "Fee" State Gazette 5.11.12

Change Maryland: 

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