Gov. Martin O'Malley threw his support behind a growing effort to repeal a $200 million tax on computer services and suggested yesterday that Maryland's wealthiest residents ought to help make up the difference with a surcharge on their personal income taxes.
The governor, a Democrat, said it was unfair to expand the sales tax to just one industry and echoed the sentiments of many lawmakers who believe the application of the levy was not thoroughly vetted when it was approved in November.
"I've never been a big fan of this computer tax," O'Malley told reporters after an appearance in Dundalk.
Technology tax opponents rejoiced at the news, but O'Malley's comments were met with mixed emotions by tax-weary legislative leaders, who are worried about reviving the same legislative battle that briefly threw last year's special session into disarray.
Senate President Thomas V. Mike Miller, a Democrat, chided the governor for trying to "move too fast" so close to the session's close and suggested that O'Malley and the Democratic Party could take a political hit if new taxes were back on the table.
"Sometimes, big city mayors, when they go to be governors, they move too fast and as a consequence they're no longer in office," Miller said.
In an e-mail response, O'Malley said he has been forced to move quickly because of the pressing problems facing the state.
"Whether it's the energy deregulation mess or the structural deficit mess that was 10 years in the making, this administration is serving at a time when there are no easy or popular ways to address a number of problems," O'Malley said.
"Given these challenges that have been neglected for years, all of us need to stay focused on solutions that serve the best interests of Maryland's families, rather than worrying about the next election."
Miller indicated he would not actively oppose O'Malley's plan, but said he still prefers an amended tech tax to an income tax increase.
House Speaker Michael E. Busch said he would back a repeal of the computer tax but stopped short of endorsing O'Malley's preference for a tax increase on the wealthy.
Both Miller and Busch said any new taxes would be tough to push through Annapolis this year, even if they were linked to repealing another tax.
O'Malley's public comments came two days after a private meeting with Democratic leaders in which he indicated his desire to replace the technology tax with a combination of budget cuts and income tax increases.
