Maryland Gov. Martin O’Malley pushed his plans to raise a host of taxes for new revenue on Wednesday, as the governor tries to close a $1.1 billion budget gap. The Democrat’s 33-minute State of the State address touted his fiscal 2013 budget as a jobs budget that could help Maryland continue to recover from the “Bush recession.”
O’Malley also lauded spending cuts he has made the last six years. With about $800 million in cuts to this year’s budget, the governor’s administration has made $7.5 billion in cuts during his tenure, he said.
Now it’s time for Maryland’s leaders to make “tough decisions” by implementing a 6 percent sales tax on gas, raising income taxes on the top 20 percent of Marylanders, doubling the flush tax and moving 50 percent of the soaring tab for teacher pensions to local jurisdictions, he said.
“I know that every family is still feeling the hurt of this recession. The people I serve are the people you serve,” O’Malley said. “I know this is a very, very difficult task. But nobody else is going to do this for us, except for us.”
Republican leadership criticized O’Malley’s budget as a jobs killer, and local leaders said his plans to raise taxes comes at the worst possible time for struggling Maryland residents.
The governor may say his budget is the result of tough decision-making for the good of the state’s future, but it’s really nothing more than a non-stop effort to raise taxes, tolls and fees, said Senate Minority Leader E.J. Pipkin, R-Cecil, in the Republican response to the speech.
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“What’s so tough about the power of government to take away your hard-earned money?” Pipkin said. “And really, what kind of investment is it when the governor takes your money for projects that provide little help to you, but are meant to please a national audience?”
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O’Malley said his budget “does more for job creation than any budget in recent history,” creating 52,000 jobs through projects such as his $357 million school construction plan and a new transportation bill, which he plans to introduce in the coming days.
