As many of you know, the Maryland General Assembly will go into a special session starting Monday, May 14, 2012. This will be the second special session called during Martin O' ("I never saw a tax I wouldn't hike") Malley's nearly six years as Governor.
In the last special session, in 2007, the General Assembly hiked the sales tax from five cents to six cents. The following year, sales tax collections had decreased by $76 million. [Figures from the Comptroller of the Treasury's website.]
What they failed to consider was that people on the Eastern Shore would go to Delaware, where there's no sales tax. People shopping for clothes who live near Pennsylvania can go north to shop and save 6%. And the sales tax is still 5% in Virginia, even after their belt-tightening during the recession.
They raised the tax on "millionaires" as a temporary measure. Many "millionaires" fled the state. So did many regular people who were tired of it all.
State spending has continued to increase every year, causing the governor to become lacrimose about not having revenues to cover them. Spending "cuts" the governor has touted are actually decreases in the increases in spending that he and his cronies wanted. Even this year, the spending is $750 Million over 2011's budget.
The Democrats in the legislature look hither, thither, and yon for new tax victims, so, in 2007's special session, they passed a "Computer Services" tax, primarily because there was no lobby to fight them. The following year, computer services business professionals showed them the error of their ways, and they had to delay, and then, repeal the measure.
Compare the Census numbers from 2000 and 2010. There's not a lot of population growth in Maryland. Why? Taxation and regulation. Many from the Eastern Shore are moving across the line to Delaware. The exodus from the Baltimore Metro area to Pennsylvania continues. They are just not getting it.
Comptroller Peter Franchot, who, as a Delegate was a big-government spending guy, has been an excellent steward of State funds, and has acted in a fiscally conservative manner. He has been a voice out in the wilderness, however. He warned them NOT to raise taxes in 2007, and called for a two year tax moratorium before the General Assembly in 2012.
They're not listening, and more people are moving out.
One of the secret proposals coming up in this special session will be to officially change the State's motto. Nobody will admit it, and you can't find the bill filed just yet, but it's coming. The current motto, "Fatti Maschii, Parole Femina" will change to "Bend Over, We'll Drive."
Will the last person leaving the state please turn out the lights? Thanks!
