Soccer Dad: In maryland all prices rise

January 16, 2008

In maryland all prices rise

Coming a little late to the party the ~~O'Malley re-election committee~~ Baltimore Sun finally discovered on Sunday that raising taxes wasn't a way to improve a politician's popularity in Taxes fuel discontent:

In one of the nation's most staunchly Democratic states, O'Malley's approval rating is just 8 percentage points above President Bush's rating in the same poll. O'Malley's job approval numbers are also close to 10-year lows in how Marylanders have felt about the work of their governors.

"He's given away all of his political capital on this special session," said Steven L. Raabe, president of OpinionWorks, the polling firm that conducted the survey for The Sun. "He probably needed to do it from a policy standpoint, but one could question the manner in which it was done because it has come at a great cost to his ability to lead the state."

The statewide poll, which was conducted Jan. 6-9, surveyed 904 likely voters and has a margin of error of plus or minus 3.5 percentage points.

(In this poll the Governor ranks ahead of the President, unlike the Washington Times poll. And, by the way, more here.)

The way it was done? That's interesting.
Keep in mind a few things.
According to the Tax Foundation before the increase, Maryland was ranked #15 in taxes paid per capita before the.
Over the past 10 years Maryland's budget has averaged an 8% increase per year. (It's doubled from $15 billion to $30 billion.)
Some of the taxes were extended in an arbitrary fashion.

Unlike the fitness buffs who voiced strong opposition last week during rallies and testimony, these three industries do not have an active presence in Annapolis.

"There's no strong voice," said Barbara Hoffman, a lobbyist and former state senator, said of landscaping, computer services and arcade owners. "I think that's one of the reasons they got picked, I've got to tell you ..... But I'm sure they'll come out of the woodwork."

Once you hear something like that it's clear that Governor and Democratic legislature were hellbent on raising taxes, not on keeping spending in check. The choice of industries to tax was not based on some objective economic criteria, but whether or not they paid lobbyists to grovel at the feet of the legislature.

Another indication of ignoring economic criteria is mentioned back by the Sun.

Marguerite Bowman, 60, a registered Democrat and retired teaching assistant who lives on Kent Island in Queen Anne's County, said she buys appliances and furniture in Delaware to save on sales tax and has even considered moving there to avoid high income taxes.

"I have thought about it several times," she said. "If I'm buying an appliance, I got news for you, I'm going to Delaware. If I'm buying furniture, I'm going to Delaware. People do it all the time out here, and we do it because we don't have to pay the sales tax."

To what degree the rise in the sales tax will drive consumers elsewhere remains to be seen. Certainly, those living on the Eastern Shore will be inclined to go to Delaware for larger ticket items. Perhaps those living near the Pennsylvania border will be more inclined to cross it to purchase clothes, which are not taxed by our neighbors to the north.

When I contacted one of my representatives and pointed out that $1.7 billion is less than 6% of the total budget and that the difference could be accounted for by some belt tightening, he responded that no one considered that an option, not even Republicans. (I believe some Republican legislators would disagree with that.) The impression I got was that my concern meant little or nothing to him. (Admittedly I've written some harsh things about and to him.) I wonder how many other Marylanders felt that their concerns were simply ignored by the Governor, legislature and their promoters in the media.

Given that Comptroller Franchot argued against the special session, it seems odd, but I think he was the voice of reason in this tax grab. That is a frightening thought.

I just notice this. Even though Governor O'Malley has had no problem raising taxes, he hasn't been able to accomplish one of things he campaigned on.

Not only has the O�Malley PSC allowed rates to continue their upward spiral, now they have approved another rate hike for � compact fluorescent bulbs.

I just hope the citizens of the PRoM remember all this when the governor and his rubber stamp legislature run again in 2 1/2 years.

maryland politics.