Del. Bromwell: Special Session Brings Income Tax Increase
The 2012 Special Session of the General Assembly convened on May 14 and adjourned on May 16. It didn’t take long to accomplish the task for which it was called by Governor O’Malley, raising Maryland’s income tax rate for 14% of the state’s residents. I opposed this tax increase. As I stated before, I thought this tax increase was totally unnecessary. To prove the point, the revenue budget approved by the special session has a $204 million surplus.
As far as I’m concerned, it’s unconscionable to increase taxes to produce a spending plan with a multi-million dollar surplus. And after five years of tax increases, only half of the $1.1 billion structural budget deficit has been eliminated.
Under the income tax increases, individuals who earn over $100,000 and couples who earn over $150,000 will pay one-quarter to three quarters of a percentage point more, depending upon their income. The top tax rate in Maryland will be 8.95%, tying with D.C. for the 4th highest income tax nationwide. The personal exemption will be reduced from $2,400 to $1,600 for single filers who earn between $100,000 and $125,000 and joint filers who earn $150,000 to $175,000. For single filers who earn between $125,001 and $150,000 and joint filers who earn between $175,001 and $200,000, the personal exemption will be reduced from $1,800 to $800.
Tax increases will be retroactive to January 1, 2012. According to the Tax Foundation, Marylanders bear the 4th heaviest state/local tax burden in the nation and pay a per capita tax of $5,218. People in our neighboring states fair much better. Virginia ranks 13th with a per capita tax burden of $4,392; Pennsylvania is 15th with a per capita tax burden of $4,190; Delaware ranks 17th with a burden of $4,091 and West Virginia ranks 44th with a tax burden of $3,034. Locally, only D.C. tops Maryland, ranking 3rd with a tax burden of $6,076. These statistics were compiled before the Special Session.
I cannot emphasize too strongly that every tax dollar taken from an individual is a dollar less that neither businesses nor the economy will see. Higher taxes make it less likely that small and local businesses will create jobs and invest in growth. No wonder the seventh annual report by Chief Executive Magazine ranks Maryland in 38th place among states that attract business location and expansion.
Between December 2010 and December 2011, Maryland added 22,000 private sector jobs – a 1.1% increase in private sector jobs. The national private sector job growth was 1.8%. Any way one looks at it, Marylanders are taxed excessively and that excessive taxation depresses the economy and job growth. While this increased tax plan was passed over my objections, I am proud to have stood with members from both sides of the aisle and voted against it. Enough is enough!
Joan Wood
8:46 am on Tuesday, May 22, 2012
I do not live in your district, but, THANK YOU for trying!
shannon ruddock
9:57 am on Tuesday, May 22, 2012
At which point will the voters of O'Malley say his raping of the residents of this state is enough? How much more money does he need? Does anyone in the tax brackets he has plundered once again have anymore to give?
shannon ruddock
9:58 am on Tuesday, May 22, 2012
I forgot, thank you Mr. Bromwell, for standing up for us against more taxation.
Neil B
11:04 am on Tuesday, May 22, 2012
Yes. Thank you for voting no. The government needs to spend less. Not more. Tax increases are only going to increase the flight from the state.
Neil B
11:09 am on Tuesday, May 22, 2012
Just a caveat. Maryland has lost 8000 jobs between March and April. That is more than a third of the gains from last year lost in two months. Things are not good.
Tim
1:02 pm on Tuesday, May 22, 2012
4th most taxed state in the Union. Well done Dems.
Also of note, using the same resource (Tax Foundation) they determine Maryland is the 9th worst tax climate for business (42nd best).
Our neighbors? Dealware: 12th best. Pennsylvania: 19th best. Virginia 26th.
David A. Kraus
1:07 pm on Tuesday, May 22, 2012
Thanks from me also for your vote. The state did not have a deficit under Govenor Ehrlich. His administration actually left a very sizable surplus.
Kris
1:41 pm on Tuesday, May 22, 2012
Agreed. Thanks Dumbocrats for forcing us to throw away yet more of our own money toward special interests.
Eric Bromwell
2:00 pm on Tuesday, May 22, 2012
@David A. Kraus
Thanks for your comments David, but I served under Governor Ehrlich for four years. While that is a popular rumor, I can tell you it isn't true. Governor Ehrlich inherited the same mess that Governor O'Malley did when he was first elected. We all did. I'm not saying I agree with either Governor on how they raised revenues, but I just want to point out that there has never been a, "surplus." But please don't take my word for it...
Governor Ehrlich’s budget secretary, Cecilia Januszkiewicz, admitted to the Senate Budget and Taxation Committee that the entire amount would be consumed just to “come close to balancing” the FY 2008 budget. [Testimony of DBM Secretary Cecilia Januszkiewicz, February 2, 2006]
But that is obviously old news. I will continue to oppose tax increases.
Tim
2:47 pm on Tuesday, May 22, 2012
This.
There's this foggy memory of the Ehrlich years. Fact is, Ehrlich increased State spending over his 4 years more then O'Malley has in his years. O'Malley is getting killed as much for timing (Marylanders are at the breaking point) as much as anything.
Look up the State budgets and the total amount of spending year by year. They are accessible on the state website.
Additionally, from a state health standpoint, Maryland is still very healthy. Debt to GDP ratio of about 12%. The state is nowhere NEAR being run into the ground.
However, it's residents are pretty much getting taxed into it. There's no debating this.
David A. Kraus
1:31 pm on Friday, May 25, 2012
Hi Eric. I suppose that the surplus was just a political rumor. Thanks for your comment. Please say hello to your dad Tommy. Please tell him greetings from all the guys from the old crowd at Perry Hall.
Elizabeth A Hahn
7:18 pm on Tuesday, May 22, 2012
Thank you Eric, for standing up for Marylanders. Unfortunately, you are a minority in a bigger group of greedy politicians.
ANT
8:14 pm on Tuesday, May 22, 2012
HELLO ARE YOU ABLE TO DO ANYTHING ABOUT THE NOISE , @ PERRYHALL SHOPPING CENTER , THE TRASH PICKUP IS TUE WED THURSDAY AND THEY PICK UP @ 2 3 AND 4 AM AND MAKE A RIDICULOUS NOISE , AT THAT HOUR THERE MUST BE SOME ORDNANCE THAT CAN BE IMPOSED , KATHY KALUSEMIRE ,OR WHAT EVER HER NAME IS WAS WORTHLESS SHE DID NOTHING . THE POLICE SAY I HAVE TO BLOCK THE TRUCK AND CALL POLICE SO THEY CAN SITE THE DRIVER , I HAVE NOT HAD TIME TO CAMP OUT THERE YET , PERHAPS YOU COULD SUGGEST SOMETHING . THANKS FOR YOUR HELP .
DS
9:07 pm on Tuesday, May 22, 2012
You are fighting a loosing battle Delegate Bromwell.
The tax happy idiots in Annapolis just don't care. And there is no one to stop them. I think we all need to come to the uncomfortable realization - Maryland has changed. It is not the State we used to know. Baltimore and surrounding areas have gone from a hard working blue collar town - who used to go to 33rd street every Sunday to worship the Colts - eat crabs - drink natty boh - to a State of have and have nots. We don't have the plants anymore - we have freeloading handout seeking individuals and then greedy corporate execs living in Howard County, The rest of us - the remaining working middle class - are left to pay the lions share.
Delegate I tell you this - Maryland better hope the economy and housing market does not turn any time soon because when it does I can't tell you how many middle class tax squeezed people will leave. They will sell thier houses and just leave and then I would love to see how the blood sucking Democrats will fund thier useless projects.
This is not aimed at you - as I really think there are politicians in the State that care GO MCDONOUGH) but I just hope the jerks in Annapolis know what they are doing.
Tell OWEMalley there are a few taxes he left out - try a Ravens tailgating tax - a crab tax - a boardwalk tax - a skeeball tax - a horseracing tax - and a air tax.
Good luck
Kris
8:55 am on Wednesday, May 23, 2012
Well put DS. There's a relatively simple solution to these woes- VOTE REPUBLICAN! As a Republican myself, I can attest that there are many that give my party a bad name, but at the end of the day, if you want less taxes and less government, there's your solution.
Tim
10:18 am on Wednesday, May 23, 2012
Kris: This just isn't always true. Government exploded under the GWB years.
It's supposed to be this way, but as Del. Bromwell mentions, it's not black and white within the parties.
Eric Bromwell
9:06 am on Wednesday, May 23, 2012
@Kris- There are people in both parties that give the parties a bad name. I try to be the kind of Democrat that I believe reflects the views and interests of my district. I hope that before you just vote along party lines, you will take the time to look at my voting record. I would put my record in opposition to tax and fee increases against anybody, R or D.
@ANT- As far as the noise at Perry Hall Shopping Center, I will look into it. I can tell you that you are not alone neighbor, as I live directly behind McDonalds and the KFC on Belair Road. We have the same issue.
Tim
10:20 am on Wednesday, May 23, 2012
Contrary to popular belief, you CAN be a Democrat and still be fiscally reasonable like Del. Bromwell. Many choose the D's for their social platform.
It's hard to believe with all of the hyper-partisanship going on today, I know...
Kris
12:53 pm on Wednesday, May 23, 2012
I understand that there are always exceptions to the rule, and its great to see Eric voting against the tax increases, but Generally speaking Republicans support lower taxes and less government/special interest/etc than do Democrats. Believe me, I am far from hyperpartisan. I'm the first to admit how moronic many Republican leaders are. A prime example is the McDonough clown (as though racism is going to help our party image), or Romney, a guy who argues for "normal" mariages while his grandfather probably had 5 wives. If there were an ancharist party, I'd probably support that. All I'm saying is, (with a few exceptions) our corrupt, greedy government sucks, so lets have less of it. Also, I shouldnt have to pay for complete strangers to have the internet/ cell phone/ whatever, when I manage my own finances in a fiscally responsible manner. Unfortunately, with our present broken system, that means voting republican. End of diatribe.
Tim
1:59 pm on Wednesday, May 23, 2012
Kris: I hear you. It's just unfortunate that while 'Republicans' tend to involve less government, it also involves less regulation on exploitative actions like, I dunno, destroying the environment (remember the 1930's historically?),the banking system (Still, after the crash!) being broken, the housing market bubble and illicit derivative trading that cause this borderline Depression, and the dot.com crash before it (under Clinton).
In fact, the banking system is MORE broken and subject to another crash then it was before. The Facebook fiasco is just another example of how broken things are.
It would be a LOT easier to go back to stomaching Republicans if they weren't so hung up on pacifying the wealthy. I find it comical when Republicans talk about President Obama promoting class warfare. Republicans have been more stealthily executing class warfare for decades now. Although these days, they are subtle about it at all.
Class warfare is real. It's happening in Northern Africa. It's happening in the Middle East. It's happening in countries throughout Europe. It's going to happen here.
...
Tim
2:03 pm on Wednesday, May 23, 2012
I'm not suggesting Dems have all the right answers either. They don't. Seems no party does.
Then, you look at a 2+ party system, and then you see the warts those have. People think our government is divided, they barely hold a candle to some other countries.
It's unfortunate, but you know what they say about power: It corrupts.
Conceptually, the best I can think of is inverting the scale of government a bit. Making local governments responsible for more. Not quite confederation-like, but you get the idea. Local policies are generally more easily actionable then national.
...
wilson
2:04 pm on Wednesday, May 23, 2012
lets see . dems take an give stuff to illegals and lazies to trikle up . repubs take an give stuff to rich to trikle down . jus special . aint this great .
Tim
4:05 pm on Wednesday, May 23, 2012
Wilson: Don't forget, the same "Republicans" throwing blame on "Democrats" for supporting illegals tacitly do the same things themselves, by not proactively punishing the businesses that hire them.
There's two ways to attack the illegal immigrant problem from a job specific perspective.
To clarify: I am strongly anti-illegal (emphasis, illegal) immigrant.
wilson
4:11 pm on Wednesday, May 23, 2012
who cares . illegals take poor work real americans dont wont . legals take good work real americans do wont . either way get screwd twice .
Tim
2:38 pm on Thursday, May 24, 2012
Wilson: In a modest percentage of cases, true. Generally speaking though, illegals will take the jobs at half of the pay an American would.
Wouldn't want to cut into that company profit now, would we? Nah, my wife needs a new yacht.
wilson
2:50 pm on Thursday, May 24, 2012
u can borow my yaht anytime u wont . gotta bring ur own oars thogh .
Eric Bromwell
1:45 pm on Wednesday, May 23, 2012
@Kris Thanks!?! I would only point out that during the term of our previous Governor, a Republican as you know, I was your ONLY Delegate to vote against his "fee" increases. Car registration fee, flush tax, property tax, tolls, were all raised under a Republican Governor. I opposed all of them. So, I think it may be easy to point at one party right now, but I think it's all relative.
AllStar
1:58 am on Thursday, May 24, 2012
Thanks for acting like a conservative on this one Eric.
Paul Amirault
7:00 pm on Thursday, May 24, 2012
Dam if you do, dam if you don't, like most of Eric's constituents, socially liberal, fiscally conservative. Good job Eric.