Change Maryland: Special Session Made State
"a Laughing Stock"
5.16.12
Change Maryland, the state’s largest non-partisan, grassroots citizen organization representing more than 13,000 members, described the outcome of the special session today as a reckless fiscal policy that ignores the will of the overwhelming majority of Marylanders while creating a liability for those interested in private sector job growth.
“Not only did the Governor and legislative leaders ignore the 96% of the people who oppose higher taxes, but they ignored their own independent budget analysts who warned that the state already relies too heavily on the personal income tax with the second-highest rates in the nation," said Change Maryland Chairman Larry Hogan. "They may have just moved Maryland forward to number one.”
Maryland's hostile business environment has led to stagnant job growth. Maryland's unemployment rate is a full point higher than neighboring Virginia - 6.6% compared to 5.6%, according to the Bureau of Labor statistics March report.
"The tax policies and the fact that we are the 4th highest in state and local tax burden, has cost Maryland thousands of jobs," Hogan said. “Maryland has been bleeding jobs and has become a national laughing stock.” On an interview with Fox Business Network today, Hogan noted graphics that appeared during his interview segment that says "taxed to death" and "Maryland money grab" - the kind of publicity that does not enhance Maryland's perception to the business community.
In the last six years, Martin O'Malley has raised taxes and fees 20 times, taking an additional $2 billion out of the economy. After the General Assembly adjournment today, that list will now swell to 24 tax and fee increases with an additional annual burden of $2.3 billion. Change Maryland also raises concerns about the net effect of over-reliance on individual income taxes.
In 2007, an individual income tax hike was supposed to bring in $489.3 million in additional revenues by 2009. In anticipation of this "windfall" from the wealthy, government increased spending by $153.3 million during this time. However, instead of increased revenues, the net revenue from those paying the increased tax dropped by over $800 million. The net result, spending goes up, revenue goes down.
Another item that many picked up on, including national media outlets, is redefining wealth. “They have redefined the term wealth. I guess the millionaires tax out so well, that this time they decided to raise taxes not just on ‘millionaires and billionaires’ but even on ‘thousandaires’, or almost anyone who has a good job,” said Hogan. “This time, if a firefighter is married to a teacher, their income taxes just got raised.”
Despite Governor O'Malley's claims in recent days that less than 1 in 4 will be affected by this latest increase in income taxes, the game of pitting one segment of society against another is just political cover for massive tax increases on everybody.
In the last six years, Martin O'Malley has raised taxes and fees 20 times, taking an additional $2 billion out of the economy. After the General Assembly adjournment today, that list will now swell to 24 tax and fee increases with an additional annual burden of $2.3 billion. Change Maryland also raises concerns about the net effect of over-reliance on individual income taxes.
In 2007, an individual income tax hike was supposed to bring in $489.3 million in additional revenues by 2009. In anticipation of this "windfall" from the wealthy, government increased spending by $153.3 million during this time. However, instead of increased revenues, the net revenue from those paying the increased tax dropped by over $800 million. The net result, spending goes up, revenue goes down.
Another item that many picked up on, including national media outlets, is redefining wealth. “They have redefined the term wealth. I guess the millionaires tax out so well, that this time they decided to raise taxes not just on ‘millionaires and billionaires’ but even on ‘thousandaires’, or almost anyone who has a good job,” said Hogan. “This time, if a firefighter is married to a teacher, their income taxes just got raised.”
Despite Governor O'Malley's claims in recent days that less than 1 in 4 will be affected by this latest increase in income taxes, the game of pitting one segment of society against another is just political cover for massive tax increases on everybody.
“The 24 tax increases under his watch have taken $2.3 billion a year out of the pockets of struggling Marylanders and have had a negative impact on every single man woman and child in our state,” added Hogan.
Spending under O'Malley has increased by $6 billion during his term in office - $3,000 per Maryland taxpayer.
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Background: Larry Hogan on "Varney and Co." Fox Business Network
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