Annapolis – Governor O’Malley today introduced a budget that is precariously balanced on the backs of Maryland’s small businesses and middle class. Amid fantastical claims of over $7 billion in cuts, this budget increases spending by more than $1 billion over FY 2012 – just as all of the O’Malley budgets have done over the last six years.
The Governor’s budget proposal includes numerous tax increases including capping income tax deductions and phasing out personal exemptions for those making $100,000 per year or more. The budget increases the tax on smokeless tobacco and requires the collection of sales tax on internet purchases. In addition, it increases the burden on local and county governments potentially forcing a tax increase at that level as well.
“The Governor’s budget redefines “wealth” in this state and takes aim at the middle class”, said House Minority Leader Anthony O’Donnell. “Forget millionaires, this budget takes aim at thousandaires, phasing out income tax deductions such as mortgages and business expenses for those making even $100,000 per year! The Governor is balancing the budget on the backs of the middle class and small businesses at a time when we should be looking for ways to make them thrive.”
“For all of the Administration’s grandstanding about job creation, this budget takes aim at Maryland’s small businesses, the driving force behind our economy”, said House Minority Whip Jeannie Haddaway-Riccio. “From taxing coin dealers to phasing out income tax deductions, the O’Malley budget will make it more expensive to do business in Maryland.”
“What is most chilling about the Governor’s budget proposal is that even with all the tax hikes it includes, it is only a preview of things to come”, said “O’Donnell. “It does not include the massive increase in the flush tax or the hike in the gas tax and other fees that will be a part of the transportation package. Maryland’s families are struggling to make ends meet and deserve more than a pickpocket government.”