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.”