Action Needed to Fix Maryland's Unfair Tax Structure
MARYLAND'S UNFAIR STATE AND LOCAL TAX STRUCTURE SQUEEZES HUMAN SERVICES FOR THE BENEFIT OF THE ELITE
Marylanders across the income spectrum pay about 10% of their income in State and local taxes, BUT the highest 20% of the income scale pays only 7.3%
- We have had this regressive structure for many decades.
- The property tax and sales tax are very regressive, and the State income tax is virtually flat.
Meanwhile, the recession has caused deep cuts in human services.
- Gov. O'Malley says that the State has reduced spending by a cumulative $6.8 billion since he took office.
- State aid to public schools is now $550 million lower every year than it would have been according the the Thornton education formula law that was enacted in 2002.
- The 23 counties and Baltimore City are also cutting spending way back.
- The spending cuts especially hurt the poor, the unemployed, children, and seniors.
In 2011, the Governor and the General Assembly let a millionaire's tax expire. It cost taxpayers with incomes over $1 million per year an extra 3/4 of 1%. Here are some musings on what could happen in 2012.
- The Governor has now been asked to support a new millionaire's tax. Although he has not committed to do so, he has made favorable noises in that direction.
- A bill to counter corporate tax evasion is likely to go nowhere.
- The transportation fund is depleted and the gas tax will likely be raised. This hurts working people but spares the poorest who can't afford cares
- The Governor has hinted about raising the sales tax to 7%. This is regressive, but there is some talk of coupling it with other measures that would counter some of its regressive effects
If you want to work towards a fairer tax structure for Maryland and against cuts that harm the poor and working people of our State, please contact email@example.com