House Republicans Present Plan to Close Budget Gap and Roll Back Tax Increases

 Annapolis, MD – House Republicans today presented a budget plan to the House Appropriations Committee.  The plan eliminates the structural deficit by FY 2013 and allows for a gradual repeal of the 2007 increases in the sales and corporate income taxes.“This plan represents months of deliberations and tough choices”, said Delegate Gail Bates, the Ranking Republican on the Appropriations Committee.  “There are no easy solutions.  But this plan puts us on a path to fiscal stability and allows us to alleviate the tax burden on our citizens.  It will also lessen the tax burden on businesses allowing them to expand and add jobs to our economy.”

 The Republican plan reduces state spending by an additional $621 million in FY 2012 and holds growth at 2% for Fiscal Years 2013-15.  The plan allows for 4% budget growth in FY 2016.  The Republican budget replenishes the Transportation Trust Fund without increasing the gas tax.  It also reverses the raiding of the Bay Restoration Fund and Program Open Space of cash and funding the projects with debt.  The plan allows for a gradual rollback of the increases in the sales and corporate income taxes beginning in FY 2014 making Maryland a more business-friendly state.

 “There seems to be an unfortunate and growing appetite for tax increases among many in the House and Senate”, said House Minority Leader Anthony O’Donnell.  “Soaring gas, food, and energy prices could have a devastating impact on our citizens and economy.  We do not need to add on the burden of even higher taxes.  The Republican members of the Appropriations Committee have done an excellent job disproving the fallacy that tax increases are required to achieve sound fiscal footing.”

 “Just last week, a group of Democratic Senators introduced their ‘Maryland First’ concept which includes $827 million in tax increases – gas tax, income tax, and alcohol tax to name a few”, said House Minority Whip Jeannie Haddaway-Riccio.  “Our constituents have had enough and have made it clear they want real leadership on these budget issues. Our plan reduces spending, ends credit card government, and stops the demands on our taxpayers while restoring Maryland’s fiscal health.  There is no better way to stimulate the economy than allowing the taxpayers to keep more of their hard-earned money.”

Click here to view the presentation.  For additional details see Appendix Page A-1 Appendix Page A-2 Appendix Page A-3 Appendix Page A-4

6 thoughts on “House Republicans Present Plan to Close Budget Gap and Roll Back Tax Increases

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  6. My interpretation ~ O’Malley’s (Boomerang) Investments (Added Tax Payer Burdens) in MD.

    A Why not and How to ~ Point of View ~~ There are other ways of allocating additional funds instead of a forced rote increased tax/fee burden on MD Businesses and citizens.

    Increasing in taxes and fees is not a good common sense idea when the paying public’s income has declined, buying power has shrunk and so many private sector Marylanders are working 2 part-time wage low scale job to make ends meet.

    In the long term, increasing tax/fee burden on those that presently pay the 5th highest taxes/fees in the US may have possible negative cumulative boomerang consequences long after a lame duck Governor is out of office as evidenced by:

    Why not to~

    ~ MD households and private sector businesses are counting pennies and will buy less ~ boomerang effects on other tax generating items.

    ~ MD with the 5th highest taxes in the US should have plenty of revenues ~ Maryland business and citizens pay over all the 5th highest taxes/fees in the US ( Ref Census). We’re among the smaller states. Our Legislators need to look at and adjust priorities and internal budget allocations.

    ~ More MD family citizens & businesses are leaving cities & MD ~ Maybe MD roads are becoming more congested because property, water and sewer taxes/fees are so high that MD family citizens have left cities for affordable housing in remote Northern~Western~Southern and Eastern counties or neighboring states to raise their families. Be great to get them back to occupy our vacant properties and consume goods and services locally and increase tax revenue base.

    ~ More Jobs and Companies will consider leaving MD ~~MY employer moved out of MD example ~ It is a High Tech employer who left MD in 1994 to end up in TX and VA. Our Company originated in MD in the 1930’s. We generated gross annual payroll of $72,000,000, employing 1,800 to 2,000 individuals with Tech “Avg” salaries of 40 to 60K. Key Financial move decision discriminators were ~ reduce/eliminate MD tax/fee burdens to be able to competitively lower cost of doing business, obtain a right to work environment and enhance sources of engineering professional labor supply.

    ~ Good number of (and increasing) Maryland residents drive to VA, DC, Del & PA for employment. WHY ? ~ They are good places to buy gas at lower prices, some with lower consumer prices (less sales tax) and good place to conduct and grow business. Raising taxes will exasperate this and have negative affects on the stressed MD private sector.

    ~ Little impact by adding more jobs to taxpayer funded payrolls ~ Bottom line the proposals in front of the assembly needs special funding to purchase materials and labor untimely from out of state thru gov’t contracted companies. This increase gov’t labor costs thru subcontracts. At best, Marylanders may get some temp and/or part time work. Example ~ look at toll Plaza referb I 95 contract to an out of state company. Where the referb benefit of this investment to Marylanders?

    ~ MD Counties are not prepared for surprised pension tax burdens ~ Just bad idea as too many inconsistencies can develop at the expense of sustaining “Balanced” excellence of MD education staff.

    How about Solution thoughts like ~

    ~ Legislators look at and adjust priorities and internal budget allocations

    MD 5th highest taxes in the US~ Maryland business and citizens pay over all the 5th highest taxes in the US and we’re among the smallest states. There are plenty of existing revenues subject to reallocation. Legislators need to take on fiduciary responsibility for taxpayers money and look at and adjust priorities and internal budget allocations to fund critical projects. Hold the line on increasing taxes/fees assessed on MD citizens, business and visitors for 3 yr period. No need for tax/fee cuts. Focus on increasing the tax base to develop more revenues from existing tax/fee structures.

    ~ What about floating a bond to fund these projects? Encourage Marylanders to invest and with incentive of a tax advantage interest paying public municipal. O’Malley calls transportation infrastructure improvement an “investment” ~ then lets make it a true definition of the word investment and project return that will decrease tax in the future such as property tax.

    ~ Create higher gas volume purchases in MD (particularly) outlets near boarding states by lowering the gas tax by 5 cents and have agreements with outlets that they will retail price their fuel 3 to 5 cent lower than AAA published avgs in our bordering states. Create a national reputation that MD is the place to buy gas. I-95 and I-70 corridors will become preferred fuel stops. Let move the preferred fuel stop Breezewood, PA 25 miles down the road to Hancock MD and Chambersburg PA 22 mile corridor of I 81~ 33 fueling stops down the road to Hagerstown, MD.

    ~ Reduce Marylanders need to drive out of State for employment by encouraging Business to come back to MD and establish workplaces near/within residential population centers

    ~ Competitively modify Property, Water & Sewer fee/taxes to encourage commuting Marylanders to move back to MD from bordering states and reduce stress on transportation infrastructure.

    etc

    Hope this will help stimulate ideas for other solutions.

    All the Best,

    George Spencer

    Ellicott City MD

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