A tax hike a day keeps the deficit away is this week?s theme.
Gov. Martin O?Malley proposed Thursday a whopping $750 million increase in the sales tax, from 5 to 6 cents per dollar, along with a $62 million extension of it to services such as health clubs, tanning salons and property management.
But the governor also proposed a small 3 cent per $100 cut in the state property tax, and granting two weeks of sales tax holidays for back-to-school clothes and energy-efficient appliances.
Combined with Wednesday?s announced revamping of the income tax, lowering it for nine out of 10 taxpayers, O?Malley?s budgeters estimate 83 percent of Maryland taxpayers will pay less in taxes under the governor?s overall plan. Today in Baltimore, O?Malley plans to roll out his third day of tax proposals by “closing corporate loopholes,” his staff said.
The tax plans are seeking to match what the governor is now calling a $1.7 billion deficit next year, a figure $200 million higher because of lower revenue estimates.
“We need to restore fiscal responsibility to state government,” O?Malley said after “a kitchen table talk” at an Ellicott City home. He called his proposals “a long-term solution that protects investment in public education,” but that do not make Maryland “noncompetitive with other states.”
“It?s a heck of a lot fairer to the working families of this state,” O?Malley said.
A coalition of real estate groups came out Wednesday in opposition to the tax on property management, which this say will force rent increases.
“Because it would impact renters, the expansion of the tax would be extremely regressive,” Real Estate Maryland, which includes managers of apartment complexes, said in a statement.
“It will negatively impact those least likely to afford such an increase,” families with low to moderate incomes.
Senate Republican Whip Allan Kittleman from Howard County was greeted by O?Malley as he showed up at the event to provided GOP spin.
Kittleman called the roll-out “O?Malley?s traveling magic show.”
“With his one hand, he?s distracting us” with tax cuts, Kittleman said. “With the otherhand, he?s picking your pocket.”
While the governor is “a great performer,” when people see all the details there will not be as much applause, Kittleman said. “I?ve never in a million years heard that a tax increase makes us more competitive.”
