Higher Taxes

Last week at the Howard County Fair, I spoke with Comptroller Peter Franchot about the upcoming Special Session. We discussed Governor O'Malley's comments that he is open to increasing taxes during the Special Session in October. I was pleased to hear that the comptroller agreed with me that during such difficult economic times, the last thing that the state of Maryland should be doing is raising taxes. With Maryland being 50th in the nation in private sector job creation, we need to take steps to encourage job growth not discourage it. Instead of raising taxes, Maryland needs to enact legislation and implement regulations that will demonstrate to employers that they are welcome in Maryland.

In addressing the so-called "fiscal cliff" of tax increases and deep spending cuts, President Obama needs to hold firm in letting the tax breaks for the wealthy expire ("Obama talks tough," Nov. 15). This is a matter of fairness on tax policy that he stressed during the campaign. Exit polling showed that 60 percent of the electorate support higher taxes for the wealthy. That's where Congress should start in working out a balanced approach to keeping the country from going off the "fiscal cliff.

I hate to be the bearer of bad news. But the 6 percent drop in the Dow Jones Industrial Average in May, its worst performance in two years, and rising unemployment are not just bad news for people's retirement accounts. It means higher taxes for Marylanders — after yet another tax hike this month and a slowing economy. The reason: The state retirement system depends on a 7.75 percent annual return in order to meet its obligations to state workers. If the $37 billion fund does not meet its target, it ultimately leaves taxpayers on the hook to make up the shortfall.

American workers got an unpleasant surprise this month when they received their first paychecks of 2013. The typical full-time worker, who earns about $40,145 a year, found that his two-week paycheck was $30 lighter than his last check of 2012. The lost money is the result of tax increases contained in the Jan. 1 agreement between Congress and the White House to avoid the "fiscal cliff," a package of spending cuts and tax increases intended to reduce the federal budget deficit. Though $30 doesn't sound like much, it's unwelcome for households that continue to struggle in this long-stagnant economy.

President Obama is proposing to raise taxes on millionaires in what's called the Buffett Rule. Billionaire Warren Buffett begged Congress to raise taxes on people like him, noting his tax rate is lower than his secretary's. Such a millionaire tax would affect 0.3 percent of the population.  Not enough to make a significant dent in the deficit, but certainly every bit can help.   Republicans, however, balk at requiring millionaires to pay more, saying they are job creators.  (If they are, we need them to step up their efforts.)

Gov. Martin O'Malley and the Democratic leaders of the General Assembly are proposing to raise taxes on gasoline by $2 billion over five years to pay for highways, transit and other transportation projects. The legislation endorsed by the governor, Senate President Thomas V. Mike Miller and House Speaker Michael E. Busch is a complex plan that would add 2 cents to the cost of a gallon of gas July 1 and another 7 cents a year later. In 2015, it would rise by another 7 cents unless Congress passes a bill to allow states to impose the sales tax on Internet purchases.

The stalemate between Congress and the Obama Administration over raising the debt ceiling continues. Without a deal by Aug. 2, the U.S. could default on its obligations for the first time in history. Read my column about the standoff. Even the wealthy worry about the fight over the debt ceiling. A new study by research firm TNS found that 56 percent of polled affluent Americans are concerned that the Uncle Sam will default. Although 60 percent don't think the government should raise the $14.3 trillion debt ceiling.

I awoke Monday to news the horse racing industry is in trouble ("Md. horse farms fear tax break will be cut," July 11). Yet I was not at all surprised by Sen. Barbara Mikulski's negative comments regarding Republicans, specifically that they want to "get rid of teachers. " As usual, the Democrats and The Sun paint Republicans with a too broad brush. What the writer failed to mention is that, in the sausage-making process required to solve the federal deficit, the Republican leadership has taken a principled stand to insure that no American's taxes are raised.

Every four years we are subjected to the same liberal drumbeat of how the "rich" are somehow taking advantage of the poor and that even when our government takes 50 percent of their income in combined taxes, the rich are somehow still not paying their fair share. My question to those who believe that the rich need to be taxed even more than they currently are is how will this affect your life? Will taxing the rich put more money in your pocket? Will it allow you to take a vacation or help send your kids to college?

More than 100 bills have been introduced in the General Assembly to impose or raise state fees for citizens and businesses that legislators and Gov. William Donald Schaefer say benefit from state regulation or use state services. Lawmakers say the fees are more palatable to voters than higher taxes. The alternative -- higher taxes for everyone -- is less fair, they say. The state promises more budget cuts unless additional funds are available.Figuring that more revenue for the state is going to come from somewhere, The Evening Sun would like to know which you prefer as the source.