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Views of Republicans and Democrats on Changes in Maryland's Taxes
Views on the future of Maryland taxes are a fundamental point of disagreement among the three Republican candidates for Delegate from District 14 on the one hand and the eight Democratic candidates for Delegate on the other. These views were made clear at recent campaign events.
All three Republican candidates agree that Maryland needs to reduce its taxes overall. Maryland's tax system is not competitive with other states. Our corporate taxes, income taxes, and sales taxes are higher than those in Virginia. Furthermore, Maryland has high estate tax and inheritance taxes. Virginia, by comparison, repealed both its estate and inheritance taxes several years ago. Delaware has lower income taxes and estate taxes, also has no sales taxes. Overall, the Tax Foundation found that Maryland has the 4th highest combined state and local tax burden in the nation. The only states with higher tax burdens are (in order) New Jersey, New York, and Connecticut. (See Tax Foundation data available here.) Simply put, Maryland is not competitive with other states, and this is leading to erosion in our tax base. For example, many high income Marylanders established residency out of state in response to the "millionaires tax" imposed by the General Assembly in 2007, leading to a decline in tax receipts from this group of people. This decline in revenue has harmed both Maryland and Montgomery County, and the tax increase was counterproductive and harmful.
The eight Democratic candidates for Delegate take a different view. During an event in Olney on August 25, they indicated that they would all like to see tax increases, including increases in corporate taxes, personal income taxes, gas taxes, and alcohol taxes. They view a need to expand state programs and state spending, and they want more money from Maryland taxpayers to enable them spend more on their favorite programs.
Raising state taxes and increasing the tax burden are not the right things to do. Many families in our district and across the state have seen their income and wealth decline during the recent recession. The economy continues to be weak and some economists now fear a double-dip recession. The problem is not that we do not pay enough taxes; the problem is our politicians spend too much. It is really pretty simple. Every dollar taken away in business taxes is a dollar that a business cannot use to invest or hire employees. Every dollar taken away in taxes on individuals is a dollar that a citizen cannot use to purchase a new car, pay for his or her child's education, or invest for retirement. Families throughout the state have had to reduce their spending to make ends meet, and unemployment in Maryland has increased significantly. Is this the time for your state government to reach into your pocket to grab more of your hard-earned income? Of course not. I pledge to introduce legislation to reduce the tax burden on Maryland families.
The Montgomery County chapter of Americans for Prosperity polled candidates with regard to their views on tax policy and fiscal responsibility and also on government transparency and accountability. Interestingly, none of the Democratic candidates from District 14 responded to the survey. A copy of the 2010 Americans for Prosperity Voter Guide for Montgomery County, which was produced using the survey responses, is available here.
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