Posted on 03/14/2008 11:19:19 AM PDT by JZelle
DUNDALK, Md. (AP) — Gov. Martin O'Malley said yesterday he would support repealing a tax on computer services if an alternative is found, because he now thinks the tax could have repercussions on Maryland's economy.
Instead, Mr. O'Malley said he supports a higher income tax on the very wealthy, which is closer to what he originally proposed during November's special legislative session to tackle the state's $1.7 billion structural deficit.
"I've never been a big fan of the computer tax, and the more we look at it and the more we look at the potential downsides of the computer tax, the more convinced I become that we should look for some alternative," Mr. O'Malley said.
While Mr. O'Malley has left the door open for a possible repeal before, his comments yesterday reflected a much stronger interest in moving away from the tax.
But that understanding hasn't emerged for the better in the minds of business owners, who are threatening to flee the state.
Mr. O'Malley yesterday distanced himself from the tax altogether, emphasizing several times it was not his idea and that the tax came "out of left field."
The governor said lawmakers "did not have the political will" to go along with his plan for a higher income tax rate on the wealthy. Mr. O'Malley, a Democrat, said lawmakers decided on the computer tax, "which had not been as fully vetted and considered as it might have been."
One way that appears closest to Mr. O'Malley's preference is a measure that would create new income tax rates of 6 percent for people with incomes between $750,000 and $1 million a year and a new rate of 6.5 percent for people who make more than $1 million.
(Excerpt) Read more at washingtontimes.com ...
First O’Malley pushes through the tax. Then while the State is collecting it he says he doesn’t like it. What a hypocrite.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
On another angle, this is one of the smallest states in the Union with respect to geography. It would be trivially easy for business to pack up and move to surrounding states to escape any new tax.
O'Malley is actually quite the capable politician. He has managed to become less popular than Bush in one of the bluest states.
I know Delaware gets a lot of Maryland’s corporate refugees.
Not to mention the many who can shop in Delaware, especially for big ticket items, to avoid Maryland’s sales tax.
Can someone explain what this tax IS..?
Why don’t they just tax politicians and state workers at 50%? That should make up for any losses.
RE : “First O’Malley pushes through the tax.”
MoM was pushing the service tax on services and health clubs but those businesses lobbied to get rid of those so the general assembly snuck in the computer tax because those businesses were not expecting it and had no say. MoM was going to sign any tax that allowed him to reward his buddies with spending for getting him elected.
This is the site to keep up on this:
This sounds like what Granholm and the legislature did in Michigan.
We’ve got a 6% sales tax but no tax on labor and services. In order to fix a huge deficit they extended the 6% tax to include some services that would bring in $600 mil. The problem? It would cost businesses $900 mil to collect them! And the spread wasn’t fair at all - golf courses weren’t taxed but ski lifts were. The outrage was so bad that businesses *begged* for a surcharge! The service tax law was rescinded and now they pay a 22% surcharge.
This could be the latest in democrat tax policies — pass taxes that are so onerous that people will scream for one that stinks just a little less.
Enter Martin O’Malley, Destructor of Maryland!
Maryland “Freak State” PING!
Thanks for the info. I just remember O’Malley pushing hard for many tax increases(income tax, sales tax, others). I wish Ehrlich had really hammered home O’Malley’s propensity to raise taxes in the election. He might have won and we wouldn’t be facing these taxes and deficits. Plus, I can’t believe O’Malley is being honest when he says he wants to repeal any tax. O’Malley never met a tax he didn’t like.
It is a sales and use tax on computer services. See http://www.marylandtaxes.com/special_session/sut_computerservices.asp for links to draft regulations and FAQ.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.