In a recent post, I criticized Maryland Gov. Martin O’Malley’s proposed tax increase on gas and the plan to double the flush tax as too regressive. Now, the good folks at The Post have done the math and shown just how unfair O’Malley’s tax increases would be.
According to The Post’s analysis, low and middle income Marylanders will face the most significant increases in their tax burdens should all of O’Malley’s proposals be accepted. And which group would see the smallest percentage increase? Families earning over $500,000 per year. In fact, the percentage increase in tax burden for a single person earning $34,000 a year would be double that of a family earning $500,000. Of the nearly $1 billion in tax and fee increases proposed by the governor, only $200 million — 20 percent — would come from limiting tax deductions from higher income Marylanders. The remaining 80 percent on the increases come from regressive excise taxes.
President Obama has repeatedly argued for tax increases only on folks earning at least $250,000 per year, arguing that Republican opposition stems from the Republican Party’s desire to protect the wealthy at the expense of every one else. Martin O’Malley is no mere bystander in this national debate. As chair of the Democratic Governors Association he is a spokesperson and symbol for his party. O’Malley’s incredibly regressive tax proposals undermine the Democratic Party message and suggest a party unconcerned with the plight of working-class families — and that’s no small problem.
No doubt, defenders of the governor’s proposal will be quick to point out that the increased out-of-pocket costs for a family earning $500,000 per year will be $1,347, while the increase for a single person earning $34,000 will be $112. But ask yourself: Who will feel the loss of income more acutely?
[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.