Politics & Opinion
The State Budget And You |
Wednesday, 08 February 2012 10:09
By Cathy Vitale, District 33A
On Feb. 1, Governor O’Malley unveiled his State of the State address. It was one that was of interest to the many residents and businesses in Maryland.
First, the good news: Maryland continues to hold a AAA bond rating, which means that the state can borrow money for projects at a relatively decent rate. According to Governor O’Malley, new jobs will be increased within the state by 52,000. While a significant figure, many of the jobs are public sector jobs. Private sector jobs still lag behind, or are decreasing, based on the economy. A recent poll conducted on the issue of taxes for Marylanders found that 96 percent of Marylanders believe they are paying enough in taxes, yet the proposal by the Governor increased the size of the budget, much of which will come from increased taxes and fees.I thought I would see if I could find what the effect of the budget proposals would be on a local family. Individual fees or taxesdo not appear to have individuals upset; it is the cumulative effect to Maryland families that has me worried. With the passing of the 2013 budget, combined with last year’s increases, the list looks like this:
- Gasoline tax of 20 cents or more a gallon.
- Vehicle-titling increase: Last year increased to $100, this will increase another $8.
- Possibility of eliminating trade-in allowances against cost (for tax purposes).
- Emissions testing increase to $28.
- Toll bridgeincrease from $4 to $6 by summer 2013.
- Double Flush Tax for Septic Usersincrease from $30 to $60 per year.
- Sewer Users Tax Based on Usage: 90 cents per 1,000 gallons for the first 2,000 gallons, $1.25 per 1,000 gallons thereafter. Under this scenario, a family of four with average daily water usageof 70 gallons per person (8,400 gallons/month) could see their Flush Tax quadruplefrom $30 per year to $118 per year.
- Utility bill will increase another $2.00a month for wind-energy.
- Available deductions on your income tax will be reduced (which means a higher tax bracket).
- Mortgage deductions.
- Possible increases not yet presented would include increased tax on cigars, snuff and loose tobacco, coal, telecom companies, coins (purchases for investment purchases); car registration and a tax on apps. The average family downloads about 123 apps a year. That would lead to an additional $35 a year. If you are tech savvy, or have multiple users and accounts, the cost will be higher.
With all these new taxes, the state should be able to get its finances in order, but if you combine all the proposals together, the budget still has a $400 million budget deficit! The shortfall makes me wonder what will be left next year to tax.
With the ever-increasing number of Marylanders leaving the state, businesses relocating in other jurisdictions, and individuals struggling under the current financial problems, I worry about the average family in our community that cannot take on even one more obligation.
When I told a lobbyist that families had no more to give, her response was, “It’s simple; make tougher choices.” I say, “Enough.” We do have to make tough choices, but raising taxes is easy.You pass the problem onto people whose faces you don’t see and whose family situations are unknown to you. That’s not for me. I will continue to make the tough choices, but make them by making the government smarter in its spending, eliminating programs that no longer serve their purpose, and stop giving money to groups and organizations who don’t provide a public purpose.
It’s critical I hear from you. Please, come down to 6 Bladen Street, Room 154, and talk to me about the issues. You can also call me at 410-841-3510 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . I am not too proud to say I need real out-of-the-box thinkers and I would love your help.



