Death and taxes may be the only certain things in life. But until now, Marylanders have not been able to figure out how much they really pay in total taxes and fees to the local, state and federal government.
Thanks to the Maryland Public Policy Institute, state residents can figure it out on a county by county basis starting April 15. Check it out at http://www.mdpolicy.org/taxestimator.
The numbers may amaze you. As Thomas Firey, a senior fellow at the Maryland Public Policy Institute who created the calculator with intern Brian VanDoren, said, “We make big deals about foreign aid and welfare, but those make up a tiny percentage of the budget. We really spend money on four things – defense, Social Security, Medicare and Medicaid, and education.” The tax calculator makes that clear. It also makes clear how all counties in Maryland are not created equal.
The same couple with one child making $120,000 in Baltimore City pays about $68,000 in taxes each year. That figure includes communication and sales taxes and other fees along with income, property and Social Security taxes – the whole picture. In Baltimore County that same couple would pay about $60,000 and in Montgomery County about $63,000 each year.
The calculator is a Beta version, so it is a work in progress. Soon users will be able to see the math behind the numbers and critique it. But as Firey said, it answers the pressing questions: “Am I getting what I am paying for and am I paying for what I get?”
That’s the reason users of all political persuasions will find it useful. The calculator breaks down expenditures into 14 categories so users can compare which percentage of their tax contributions isdirected to various parts of the government – and measure if their priorities take precedent at the state and national level.
Until now, there was no tool like this anywhere in the United States –which is why MPPI wants to spread the technology throughout the 50 states so that all Americans can learn the true cost of government and better hold our elected and appointed officials accountable for their spending.
Armed with the information that they spend over $13,000 for health care, that family from Montgomery County mentioned above will be able to ask state legislators what they receive for their contribution andquestion how even more money state and federal legislators want to spend on it will improve their well-being.
War protesters could use the numbers to build a case for more spending on science and welfare for the poor. Tax foes around the country throwing so-called tea parties to condemn the $787 billion stimuluspackage and President Barack Obama’s $3.6 trillion budget could use it to show how much individual taxpayers will owe to finance that debt. The list is almost endless.
And for those considering a move to Maryland, it will provide a good picture of where they will get the most bang for their buck. After the calculator spreads, counties around the country could use it as an advertising tool to attract new residents and tout their business climate and schools. And those places, like Baltimore City, with an extraordinary tax burden, won’t be able to hide from scrutiny and will be forced to answer tough questions about their budgets, performance and standards.
And it builds momentum for the transparency movement growing around the country and in the state. Last month Montgomery County passed legislation to create an online searchable spending database similar to the one planned for Howard County and already in place at the state and federal level.
Those counties that have not already done so should not wait to open their operations by creating similar databases and expanding open meetings laws to show that government is run for the people and by the people.
Following the 1935 Social Security Act, which authorized the federal government to garnish taxes from paychecks, Americans have lost more and more of a sense of how much they pay in taxes. What they owe each year is much more than the difference between what was withheld from their salary and the total amount owed by tax day. This calculator reestablishes the relationship between Marylanders – and hopefully soon all Americans – their money, and the responsibility the government has to use it wisely.
In heavily taxed Maryland, it also holds the potential to reacquaint legislators with facts. And while it may not stop them from raising taxes, it will prevent them from hiding from the consequences.
Washington Examiner columnist Marta H. Mossburg is a senior fellow at the Maryland Public Policy Institute.
