From Saturday's Sun
Lawmakers craft competing tax plans
House, Senate divided on individual, corporate levies
By Laura Smitherman and Andrew A. Green
Sun Reporters
9:54 PM EST, November 9, 2007
...Nine Democrats joined all 14 Senate Republicans in voting against the plan. Critics decried the tax proposals and called for more spending cuts. They said the tax measures would be a burden on lower-income and middle-class families, and would drastically affect spending habits, inhibit business and even discourage people from living in the state.
The next time you think only Democrats have the bests interests of the working people at heart, remember this.
"It's clear that every Marylander is going to pay more, significantly more," said Sen. David R. Brinkley, the minority leader from Frederick County.
"Sen. Bobby A. Zirkin, a Baltimore County Democrat who voted against the tax bill, said many elements did not seem well thought-out. "To throw things against the wall and see if they stick is not the way to do this," he said.
"But the Democratic-controlled chamber voted to limit debate, ending any hopes for a lengthy filibuster, and the legislature appears headed toward compromise on a package that raises taxes, curtails some spending and boosts health care programs and transportation projects.
"...A late addition to the bill was the so-called "snowbird" provision. It would define a Maryland resident as someone who lives in the state for more than three months, instead of six months under current law, and subject them to the state income tax.
Do you realize that this subjects these people to the income tax of two states - say, Florida and Maryland? That's just not fair. And I'm not sure it's Constitutional, either.
Supporters say that it would ensure that residents who spend most of the year outside of Maryland in lower-tax locales, mostly in the Sun Belt, carry their share of the tax burden. They contend it could raise as much as $60 million. Opponents, however, say the bill unfairly targets retirees, including some on fixed incomes, and would prompt residents to abandon Maryland entirely.
Once again, the Republicans have it right.
"The House and Senate also are at odds over proposed changes to corporate taxes.
"A House committee endorsed increasing the corporate income tax to 8.75 percent, and the House included in its legislation a corporate tax law change known as "combined reporting" aimed at preventing big companies from hiding profits out of state.
"Business leaders quickly criticized the corporate tax measures. A study commissioned by the Maryland Chamber of Commerce and other groups found that increasing the corporate income tax to 8 percent and implementing combined reporting would cost more jobs than any other tax changes the legislature is considering. Business groups point out that Virginia's rate is 6 percent and North Carolina's is 6.9 percent.
"Karen Syrylo, a tax consultant for the chamber, said combining the two -- and increasing the corporate tax rate to 8.75 percent -- would be "very, very, bad." She added: "Underline 'very.'"
"It's a huge detriment," Syrylo said. "Our biggest competitors are Virginia and North Carolina."
See my previous post on how this is a bad thing for the working people of Maryland, and why it will increase crime.
"But Sean Dobson, the director of Progressive Maryland, said the House is moving in the right direction. "The corporate income tax has not nearly kept pace with robust corporate profits, so it seems to us the corporate community can do more to help us get out of this deficit," he said."
The thing that politicians never seem to get is that it's a percentage! That means that as the profits increase, so do the taxes - percentage, remember? Maryland democrats simply won't be happy until they get it all. But they'll end up with none; their stupidity will drive these businesses to other states.
"The Senate would extend the sales tax to computer services and arcade games, while dropping a proposal to add landscaping services. The House would extend the sales tax to auto repair and to parking garages, while doubling the hotel tax."
The inner harbor has already lost considerable convention business to high room rates. This exacerbates the problem. What are they doing down there?
"...We seem to be so concerned about, as the governor calls them, the working poor, and it seems to me they're going to be the people who are going to own cars that are 10 or 12 years old and break down more often," said Del. D. Page Elmore, an Eastern Shore Republican. "This will be a tax on the working poor."
And again, the opposition has it right. Who's more compassionate?
"...But Republicans said the bill was a hollow gesture because the governor is not required to follow the spending guidelines. "We're pretending that we're making significant cuts in the budget to set up the tax increases," said Sen. E.J. Pipkin, an Eastern Shore Republican.
"On Thursday, the Senate approved a plan to hold a referendum in November 2008 on whether to allow up to 15,000 slot machines at five locations around the state, which now also goes to the House for consideration."
Can we hold a referendum on whether or not they all - especially the Governor - keep their jobs?
Please have a look at the original article and decide for yourself.
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