Well not enough people paid attention and guess where we are now -- more taxes and a great deficit.

Keep Your Eye on the Proposed Tax Increases

Gov. O'Malley's proposed taxing increases are getting national attention -- and it's not favorable.

A Wall Street Journal editorial last month chronicled the governor's almost daily call for tax increases and pointed out we already have the 23rd highest tax burden among the 50 states.

By the Journal's reckoning, O'Malley's increases would raise $2 billion dollars to meet a supposed $1.5 billion deficit. It says that means $500 million more in spending, besides the increased spending that is causing the deficit.

It also points out that O'Malley claims the increases will reduce the taxes for 95 per cent of state taxpayers.

I'm not good at math, but that doesn't seem to make sense.

Guess Who Won't Pay the Service Tax

Gov. O'Malley's tax plan calls for taxes not just when you buy goods, but now when you purchase services. That means a tax on haircuts, labor for car maintenance and repairs, health clubs, etc., etc. It was pointed out that under the plan you would have to pay taxes for an accountant's help in paying your taxes.

Guess what class of service professionals won't be taxed. LAWYERS! How many lawyers are in the General Assembly, I wonder.

Maybe Non-Partisan But ....

The previous blog saying we Marylanders are not so heavily taxed presents the point of view of the Maryland Budget & Tax Policy Institute, which calls itself "non-partisan." Non-partisan it may be, but it certainly has an agenda.

In its October report, it talks about the plight of elderly and those with disabilities and how they need more state assistance, failure to help low performing students in schools because of lack of funds, and expresses a great deal of anguish over health care for children. It goes on for three paragraphs about a 12-year-old boy in PG County who died from a brain infection resulting from a cavity that his parents supposedly couldn't afford to have treated (although the boy was eligible for dental care under the state Medicaid program). The answer, of course, is more state spending and higher taxes.

Anyway, what I am saying is the Institute has a very definite political agenda which involves spending more money on social programs. Whether we are taxed enough or not is a matter of opinion and not fiscal analysis.

We're Not Taxed So Heavily Now

According to the non-partisan Maryland Budget & Tax Policy Institute, state taxes in Maryland are low in relation to the income earned by its residents.

The proportion of Marylanders’ personal income being collected to pay for state and local government is lower than in 46 of the other 50 states.

All state and local government spending in Maryland represents a smaller investment of our collective resources (income) than in any other state in the US (or D.C.)

Take a Look at This Site

State Senator E.J. Pipkin has a site -- www.StopMarylandTaxHikes.com -- that gives his arguments against the proposed tax increases.

He points out the legislature is being asked to enact a 20% increase in sales taxes, and increases in personal income taxes, gasoline tax, cigarette tax, vehicle titling tax, and corporate income tax. In addition, they are looking at taxing services not previously taxed, such as cable TV, auto maintenance, beauty and barber services, shoe repair, and many, many others. Sen. Pipkin says even tax preparation will be taxed -- you'll be taxed for paying taxes!

He says we're looking at the largest tax increase in Maryland's history.

Why a Special Session

One newspaper article says the special session to raise taxes will cost us taxpayers $700,000. If the governor had waited two and a half months until the regular session (as many Assembly leaders urged) we could have saved a big sum.

Question -- was the $700,000 figured in the deficit or do we add that to the $1.7 billion?