Most Read: Opinions

direct signup

Today’s Opinions poll

Would you use an app that tells you the partisan affiliation of products you're considering buying?

Review your answers and share
All Opinions Are Local
Posted at 02:30 PM ET, 01/23/2012

O’Malley’s budget would jeopardize recovery

Last week, Maryland Gov. Martin O’Malley (D) unveiled his fiscal 2013 budget. As with all prior years, O’Malley had to deal with a structural deficit — this time amounting to roughly $1 billion of the budget’s $14 billion total. With the exception of a 2007 special session, O’Malley has opted to bring the budget into balance every year through spending cuts and one-time transfers from special funds. Even in the 2007 special session, the $800 million in new revenue generated by taxes on businesses and individuals were coupled with $500 million in spending reductions. All told, O’Malley has cut spending by $7.5 billion during his tenure — a commendable accomplishment during very lean times.

For fiscal 2013, O’Malley continues to make cuts — roughly $600 million to $800 million, depending on how you do the math — but decided the time was right for more tax increases, as well, which O’Malley describes as a balanced approach. I do not disagree with the need to consider additional sources of revenue, but unfortunately O’Malley’s concept of “balance” is anything but balanced. O’Malley proposes capping deductions for singles making more than $100,000 and couples making more than $150,000. Estimates are this would impact the top 20 percent of wage-earners in the state — so this tax increase is not targeted at the top 1, 5 or 10 percent. It hits deeply into the middle class in a very high cost of living state.

The capping of tax deductions is not the worst offender, however. Though the income-tax provisions would work to make Maryland’s income tax structure more progressive (a good thing), it is offset by several proposals that would be especially harmful.

[Continue reading Todd Eberly’s post at The FreeStater Blog.]

Todd Eberly blogs at The FreeStaterBlog. The Local Blog Network is a group of bloggers from around the D.C. region who have agreed to make regular contributions to All Opinions Are Local.

By  |  02:30 PM ET, 01/23/2012

Read what others are saying

    © 2011 The Washington Post Company