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Wall Street Journal Highlights Fiscal Insanity in Annapolis

Written on:March 13, 2010
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The following is a guest blog post from Ted Patterson, Republican candidate for Delegate to District 34B

We cannot tax our way out of serious budget problems in Maryland.  We must cut spending.  We can do so in an equitable way that will minimize pain for government department heads, but ultimately legislators in Annapolis must realize one thing: they were not elected to protect government bureaucrats.  They were elected to serve the citizens.

We need a change.  We need new, fresh ideas for Maryland.  I have those ideas and I will put forth bills every year while in office to make change for Maryland.  I will cut spending, support tax reductions, streamline regulations on Marylanders, and make government more transparent.  After all, sunshine is the best disinfectant.

Not sure if we need a change?  Wondering if we should just ’stay the course’?  Don’t take my word for it.  Take a look at what the foremost business paper in the country has to say about the Annapolis crowd.  The Wall Street Journal published a scathing editorial that highlights the disaster that has followed the decision to raise taxes in Maryland:

“Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.”

(Source: Wall Street Journal. Millionaires Go Missing: Maryland’s Fleeced Taxpayers Fight Back. May 27, 2009, http://online.wsj.com/article/SB124329282377252471.html)

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