State voters believe they pay too much in taxes, poll finds...

Republican freshmen commissioned survey, decrying tax proposals O'Malley has included in his budget.

by Steve Kelly, Staff Writer

A majority of Maryland voters believe they pay too much in taxes, according to a poll released today by the freshman Republican members of the House of Delegates.

In releasing the poll, the delegates decried the tax proposals Gov. Martin O'Malley (D) has included in his fiscal 2013 budget, including his plan to cap income tax deductions and phase out or eliminate income tax exemptions for the 20 percent of Marylanders who earn more than $100,000 annually.

"We will not enable the taxaholics here any longer," said Del. Kathy Szeliga (R-Dist. 7) of Perry Hall, who led a press conference in which the delegates released the results of the poll.

The poll asked 808 registered Maryland voters if they believe they and their families pay too much, too little or about the right amount of taxes.

The poll, which was conducted by the Annapolis-based Gonzales Research & Marketing Strategies Inc., was commissioned by the 15 freshman GOP delegates.

Statewide, 63 percent of respondents said they believe they pay too much in taxes, while 33 percent believe they pay about the right amount and 4 percent believe they pay too little, according to the poll.

Eighty percent of Republicans, 56 percent of Democrats and 51 percent of independents said they believe they pay too much in taxes, while 20 percent of Republicans, 38 percent of Democrats and 43 percent of independents said they believe the pay about the right amount.

The governor's tax proposals are necessary to close the state's $1 billion structural deficit, said Raquel Guillory, O'Malley's spokeswoman, adding that the governor also has cut spending to address the gap.

"If they have a way of achieving the balance between cuts and revenue increases we'd like to hear it," she said of the GOP delegates.

Szeliga said the General Assembly's GOP caucus is working on a budget plan, but she offered no specifics.

The poll, which has a margin of error of plus or minus 3.5 percentage points, was conducted Jan. 9-15. Of the 808 voters polled, more than half were Democrats, 30 percent Republicans and 13 percent independent.

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Governor O’Malley "Balances" OMalley FY2012 Budget on the Backs of Small Business and Middle Class

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."

Myth versus Fact on the Gas Tax Increase

JANUARY 30, 2012                         E-MAIL THIS PRINTER FRIENDLY

January 30, 2012

MYTH: The money raised through the higher gas tax would only be used for transportation projects.

FACT: As Delegate Herb McMillan wrote in The Baltimore Sun, in the past three years, Maryland has diverted $1 billion from the Transportation Trust Fund to pay for other projects. Absent a constitutional ban on doing so, ongoing deficits make it likely legislators will be tempted to take more money from the Transportation Trust Fund in the future.

MYTH: A higher gas tax will improve the state economy by creating more jobs.

FACT: The higher gas tax would remove $491 million per year from the Maryland economy. Combined with other proposed transportation fees and taxes, $810 million would be removed. As such, whatever jobs would be created through higher spending would be offset by the $810 million lost in other spending.

Also, higher gas taxes disproportionately hurt the poor and those with lower incomes as they spend a higher percentage of their income on transportation than other people.

MYTH: Money from the Transportation Trust Fund would only be used to reduce road congestion and increase mobility on roads.

FACT: This Fiscal Year the Maryland Department of Transportation will spend 54 percent of total highway and transportation money on transit projects. Over the past five years, 50 percent of transportation spending has been focused on transit. In 2009, 48 percent of transportation funding went to transit - 20 times the statewide transit share of 4 percent of passenger movement. At 55 percent, the imbalance would reach 25 times.

MYTH: Transit could be the easiest way to reach work for all commuters.

FACT: There is virtually no potential for transit to carry a material share of travel to the 80 or 90 percent of the jobs outside major metropolitan areas since the concentration of destinations needed to compete with cars exists nowhere else.

MYTH: More people ride transit than ever before.

FACT: Even with a big increase in MARC train service and the addition of light rail in Baltimore, about the same share of Marylanders get to work by transit today as in 1980.

MYTH: Transit is convenient.

FACT: The average transit trip is much longer than one by car. In the Baltimore metropolitan area, the average one-way transit commute is 53 minutes, while the average car commute is 28 minutes. In the Washington metropolitan area, the average one-way transit commute is 47 minutes, while the average car commute is 32 minutes.

Of note, the Brookings Institution found that, on average, fewer than 10 percent of jobs in Washington
and Baltimore can be reached by transit within 45 minutes.

Research

Choice Denied, Part 1

Choice Denied, Part 2

Choice Denied, Part 3

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