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O’Malley’s new tax plan brings mixed reactions from citizens

Sep 21, 2007 12:00 AM (387 days ago) by Sara Michael, The Examiner
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Related Topics: Ellicott City
Gov. Martin O’Malley, center, sits next to Howard County Executive Ken Ulman, as he speaks to the Boughn family Thursday at their house in Ellicott City.
(Chris Ammann/Examiner)
Gov. Martin O’Malley, center, sits next to Howard County Executive Ken Ulman, as he speaks to the Boughn family Thursday at their house in Ellicott City.

Ellicott City (Map, News) - For homeowners like the Boughns, who have lived in their Ellicott City house for about 30 years, Gov. Martin O’Malley’s plan to reduce property taxes could offer welcome relief.

“I am very supportive of his plan,” said Penny Boughn, adding as the assessed value of her house has gone up, so have her property taxes.

Boughn, a retired sales manager for AT&T, and her husband Steven Boughn, hosted O’Malley for a news conference at their house Thursday, where O’Malley announced further details of his plan to address the state’s $1.7 billion structural deficit.

O’Malley proposed a 3 cent per $100 cut in the state property tax and a hike in the sales tax, from 5 cents to 6 cents per dollar, while expanding it to services such as health clubs, tanning salons and property management services.

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O’Malley announced his plan Wednesday to restructure the income tax, lowering it for about 95 percent of Marylanders while the top 3.7 percent of earners would pay more.

Boughn said she didn’t mind a sales tax hike, saying “We do have a responsibility to cover and pay for the services we get.”

Ulman also lauded O’Malley’s plan, saying most Marylanders will be pleased to see an overall reduction in their taxes. Many residents on fixed incomes struggle to pay their rising property taxes, he said.

But hundreds in Howard could see an increase in their income taxes. The median income in 2006 was $94,260 and more than 11,000 families were making $200,000 or more, according to the U.S. Census.

To those top earners, O’Malley said he planned to sell the plan “on its reasonableness, its fairness, and the responsibility all of us share.”

The tax hike could also be a “significant hit” to some residents in Anne Arundel, County Executive John R. Leopold said. The county’s median income was $66,000 in 2004.

In Carroll County, Commission Michael Zimmer said instead of raising taxes, the state should curb spending.

Staff Writers Jason Flanagan and Virgil Dickson contributed to this report.

smichael@baltimoreexaminer.com

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Comments from Examiner Readers

10:21 AM MST on Tue., Sep. 25, 2007 re: "Higher taxes for cars, gas would go to roads, transit, O’Malley says"

Examiner Reader said:
All citizens should tell our elected officials to authorize full scale casinos in Maryland before increasing/creating more taxes. Close the corporate loopholes, too. Then let's see how much revenue that would generate. It's ok for everyone to go broke playing State lottery games, so why not allow games (some of which) have better odds at winning? Tourist would have something else to do, also. Let's stop allowing Md money to go to neighboring states. It's time to wake up. Fixes don't always have to mean increasing taxes. It's no wonder age and citizenship are the only requirements for political office. Wake up and smell the coffee.

165 agree | 157 disagree
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8:44 AM MST on Mon., Sep. 24, 2007 re: "Transportation officials back higher taxes on gas, vehicles"

RayRay said:
If the government would stop borrowing money from the transportation fund stating that they would be paying it back and never do then the transportation trust would have the necessary money to maintain the highways and bridges. If the taxes are raised and the money is there then they will you for everything but transportation. If the state keep raising traxes then they are goin g to have more and more people and companies moving to Virginia, Delaware, Pennsylvania and West Virginia. The results would then be more and more taxes. This has got to stop.

152 agree | 160 disagree
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7:04 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Call a special session every weekend till these fools below understand.

154 agree | 139 disagree
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6:55 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Marylanders cant wait either,no more frivolous suits. “Californians cannot wait for reform. Just a few hours ago a report was released that said health insurance premiums continue to take more money out of families’ pocketbooks and employers’ bottom lines - at a rate faster than wage growth or inflation,” said Governor Schwarzenegger.

122 agree | 129 disagree
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6:51 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Unlike California we have democratic senate support and do not need citizens voting ballots, that is the process. Better luck next time republicans, wait till your voting in to propose a budget, soar losers, creating unjust uproar. Do the math before you create panic among the illiterate.

165 agree | 138 disagree
Vote on this comment: I agree or I disagree
5:37 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
I'd like to see the voters of Maryland stand against the special session to ensure our voices and concerns are heard and these tax hikes are not railroaded th" Can you provide information of how some one can go about getting their voice heard during the special session? I think that your idea is a good one and I would like to participate in standing against the tax increase. We should orgainize a rally, I don't want to leave my home (MD) and miss an opportunity of a possible good job or internship.

136 agree | 128 disagree
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4:03 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Martin O'Malley the next long living JFK. We love you.

145 agree | 161 disagree
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3:53 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
My man Can not hide the jobs Derlick hidden deficit, the feds and IRS know where they are remember. The crime rate, oh yeah, the Derlick City funds that were needed, might get fixed to pay the snitch and reduce crime with more officers. Cheap Derlick, O Honey Malley.

145 agree | 145 disagree
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3:48 PM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Man, marty don't care - BRAC is coming and with that he will be able to "adjust the books" to hide those jobs. And he hopes the voters will forget come election time. Ole marty KNOWS how to massage the books, remember his crime rates?

159 agree | 145 disagree
Vote on this comment: I agree or I disagree
10:21 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
You will pay more than the 30 dollars saving on 500.00 purchases in Deleware by not fueling up and putting miles on you vehicles. At 3 dollars a gallon, 20 gallons you pay at least 60.00 in fuel and the cost of eating out. wear and tear on the vehicle. The average cost to move? Do your homework before moving, home purchase tax, school taxes in other states, food higher, fuel prices, utilities higher, erc. Not always better just different. The rich have not paid their fair share , why should the poor be equal in taxes?? Selfish uneducacted rich are a disgrace, when a donation can offset the losses on the federal returns. Let the feds help MD one way or another.

138 agree | 138 disagree
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7:55 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
The rich already pay more than anyone else---why is it so hard to understand this. I make more, I pay more---it may not be what the dems want, but give me a break-the rich can not be counted on to support those who can't pay 4.5% on their 20k a year. I am so tired of this arguement. Here's a thought-cut spending, balance the budget. I thought that is what Dems were about? Can't we get back to that?

129 agree | 151 disagree
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7:53 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Shop in sales tax-free Delaware.

171 agree | 123 disagree
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7:46 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

William Cooke said:
If O'Malley really wanted to balance the budget he would cut taxes and encourage businesses to come to Maryland.

146 agree | 135 disagree
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7:35 AM MST on Sun., Sep. 23, 2007 re: "O’Malley’s new tax plan brings mixed reactions from citizens"

Examiner Reader said:
If the tax plan goes through then so should Gay amrriage ! We are all going to take it up the butt one way or the other !

175 agree | 179 disagree
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7:20 AM MST on Sun., Sep. 23, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
So, he's going to increase all those really great taxes and lower property taxes! and this helps the lower income bracket that probably doesn't own their own property how?

147 agree | 109 disagree
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7:11 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

MD & DE Homeowner said:
I'll just keep doing what I've been doing; loading up the car while in DE to save some $$$. If MD gets a 6% sales tax, I'll be happy to get $530 worth of goods in DE while you folks in MD only get $500. And, I'm not the only one. As I park at the Rehoboth Beach outlets or a local SuperWalMart I'm surrounded by a sea of MD and PA tags.

137 agree | 150 disagree
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5:35 AM MST on Sun., Sep. 23, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
O'Malley & his socialist thugs should be booted from office. This is incomprehensible. There is no budget crisis - just a spending crisis. Simple solution to our budget "woes": cut spending. Anyway, I'll declare a Florida residency before giving my money to these criminals in Maryland.

168 agree | 128 disagree
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9:49 PM MST on Sat., Sep. 22, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
In fact Democrats have proven to bring more jobs as a priority in comparison to Republicans. A rich bunch of cheap republican fighting over a couple hundred a year each will make my day and all dems, I will have a good long laugh, let me know when and where.

172 agree | 134 disagree
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6:57 PM MST on Fri., Sep. 21, 2007 re: "O’Malley’s new tax plan brings mixed reactions from citizens"

Examiner Reader said:
Looks like he snookered one couple. The other 5 million or so of us ain't buying O'Malley's garbage.

175 agree | 185 disagree
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5:09 PM MST on Fri., Sep. 21, 2007 re: "O’Malley’s new tax plan brings mixed reactions from citizens"

Examiner Reader said:
would have preferred property taxes be left alone; at least I can claim those on my Federal income taxes: But it's all about the poor tax payer, isn't it?

177 agree | 179 disagree
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3:12 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Get a job and pay taxes like the rest of us.

137 agree | 124 disagree
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3:12 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
O'Malley's fortune is that most of the people are dumber than bricks most of the time.

146 agree | 131 disagree
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3:07 PM MST on Fri., Sep. 21, 2007 re: "Business study: Tax hikes would cost 10,000 jobs"

Examiner Reader said:
Just as others daydream about winning the lottery, I daydream about Martyanders saying NO! to more taxes by marching by the hundreds of thousands on Annapolis. yes, I know the lottery dreamers have a better chance of realizing their dream than I.

151 agree | 111 disagree
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2:58 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
To educate rich cheap fools , it takes longer than a few days. The rich are rich for a reason, ever wonder how. CHEAP and some criminal.

146 agree | 127 disagree
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2:53 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Text Books are tax deductible on the Lifetime Learning credits as well as the other two learning credit choices, federal and state credits are available, just don't double dip like the corporations or you are audited.

139 agree | 118 disagree
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2:21 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Maryland is the only state of its neighbors to tax its college students for buying textbooks required for their classes. This tax hike would push the annual tax on students buying textbooks to well over $50 a year. Seems like misplaced priorities when the state will exempt $100 sneakers from sales tax, but not the textbooks students need for their education.

157 agree | 131 disagree
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1:05 PM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Is it possible for O'Malley to be any phonier? Look at him in that picture with the family, no doubt explaining the need to "invest" in our state - aka, raise your taxes. What a plastic, disingenous snake oil salesman.

114 agree | 133 disagree
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11:33 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
MOM said he wanted to cut the budget before raising taxes. Ummm, where are the spending cuts? Seems he is raising the taxes first. Another flip flop from Martin "I love Bil Clinton" O'Malley.

142 agree | 127 disagree
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11:19 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
If there is a budget 'deficit' (caused by passing Thornton, knowing there was an inadequate funding source), the answer is simple - reduce spending. LEAVE MY PAYCHECK ALONE.

144 agree | 112 disagree
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11:00 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
You are right...the rich know how to protect most of their money. They just buy property out-of-state or move completely to avoid high taxes. Why isn't anyone on the Tom Tancredo bandwagon...he is a Colorado senator running for president on an anti-amnesty, flat-tax program. This guy makes sense. We have these liberals running the show...inviting immigrants in to get their children free tuition at our colleges, etc. Don't the majority of Marylanders (the poor, according to O'M) see that their children need the state funds for college instead of illegal alien's children taking our tax money?!?!? I regret voting for O'M for mayor. He didn't care enough about the city to stay and finish the job. His eyes are on the White House. This awful tax plan might just run the state into the ground enough, and scare the rest of America enough to keep him out of the race for the White House. The middle class will pay this...not the top or bottom earners. Mayo Shattuck should pay our taxes!!!!!!

167 agree | 134 disagree
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10:55 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Re: All unveiled tonight on PBS Then why did he bother with all the "news conferences" before tonight? Because they were just photo-ops!

126 agree | 132 disagree
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10:31 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Instead of separately unveiling specific portions of his tax plan at private homes, why not unveil it all at once in a public setting? I was at the Thursday "kitchen table talk" and the media wasn't given much time for questions. So it begs the question: How else does this man expect to sell this tax plan of his? Also, how much time, energy, fuel consumption, and wages goes into all of the govt. officials, media, etc. traveling to a different MD jurisdiction once a day to listen to him sell this plan? This is nothing more than a silly, wasteful photo-op with the citizens he "cares" for. When the resident came to the podium to give her comment, she looked at a paper and mumbled "I hope I can remember this." She continued to say how proud she was of the governor. Then, press releases were handed out seconds later with her very same quotes on them. Nice job giving her what to say and using this family for your own political gain.

165 agree | 130 disagree
Vote on this comment: I agree or I disagree
10:15 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Ok - he is raising taxes to off-set the deficit - but they estimate that 83% of families will pay LESS taxes under this plan - so who are the 17% that are going to foot the bill? Don't tell me it is the rich. Right - it will be the working middle class, as usual.

152 agree | 142 disagree
Vote on this comment: I agree or I disagree
9:51 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Buy a hybrid instead of a Mercedes and and solar power your house instead of Constipation , tax deductions and credits still available for the rich. Oprah will tell you how to make donations to a 5013c.

123 agree | 119 disagree
Vote on this comment: I agree or I disagree
9:47 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
750.00 increase a year for the 200K salary, plus they have to pay 6% tax, big deal cheapies. make a charitable donation to offset the loss.

156 agree | 119 disagree
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9:35 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
There is a cap on rent increases look it up with HUD, dumb A_ _. Do you really listen to the rich, old disabled lady with a lie of a yearly increase?

158 agree | 111 disagree
Vote on this comment: I agree or I disagree
9:00 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
here is a simple idea, SPEND 1.7 BILLION DOLLARS LESS!!!!

155 agree | 145 disagree
Vote on this comment: I agree or I disagree
8:07 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Your income must exceed the levels in question,so your rich old and disabled with a rental increase percentage by law that can only increase a certain percentage by laws. What is your rental increase every three years, or are you mistaken???

143 agree | 143 disagree
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7:57 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
Taxes on health clubs and tanning salons do not concern me. If you can afford health clubs, tanning salons, etc., then you have nothing to worry about. What does concern me is the tax on property management. I am a senior citizen on a fixed income, living in an apartment complex with elevators because I had to sell my very modest home due to the steps inside and outside the house. I can no longer walk steps. I have been in my present apartment for three years. Every year there is a rental increase. So far I have been able to handle each annual increase in rent but if there is now going to be a 6% O'Malley increase on top of the regular rental increase, I'll have problems. I'm learning one thing and that is that the democrats are not for the low income or little people. If any members of the legislature should read this comment, I hope they will keep little people like me in mind when next they vote on Mr. O'Malley's exhorbitant tax hikes and instead cut expenditures.

168 agree | 110 disagree
Vote on this comment: I agree or I disagree
7:34 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Examiner Reader said:
83% of Md will agree to fix the Derlick Deficit!

121 agree | 120 disagree
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6:41 AM MST on Fri., Sep. 21, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
Rocko, Maryland was rich way before O'Malley, and had nothing to do with your precious Republican cant-do-wrongs.

141 agree | 133 disagree
Vote on this comment: I agree or I disagree
4:02 AM MST on Fri., Sep. 21, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
We are all being taxed out of our homes. Can't afford to live in maryland anymore. Thanks. OMalley

146 agree | 130 disagree
Vote on this comment: I agree or I disagree
4:01 AM MST on Fri., Sep. 21, 2007 re: "O’Malley sees big sales tax increase"

Reader said:
sshhhh..thats the tax plan. Throw the dopes a bone and then tax the heck out of the middle class.

137 agree | 149 disagree
Vote on this comment: I agree or I disagree
3:56 AM MST on Fri., Sep. 21, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
It's the middle class who suffer. Send OMalley packing.

174 agree | 142 disagree
Vote on this comment: I agree or I disagree
3:52 AM MST on Fri., Sep. 21, 2007 re: "Lower taxes for most; wealthy socked"

Me, Myself and I said:
Well, when the majority of people start feeling the pinch caused by O'Malley...hopefully they will learn and bring that experience to the ballot box next time around. (And keep Hillary Rotten Clinton out of office)

130 agree | 128 disagree
Vote on this comment: I agree or I disagree
8:57 AM MST on Thu., Sep. 20, 2007 re: "Lower taxes for most; wealthy socked"

Teflon Leprechaun said:
We all need to start calling our elected officials and threaten then that they will never have a job unless they the start cutting before even CONSIDERING TAXES. This is getting to be ridiculous and I am not going to stand for this. I'm calling all my elected officials today and the call will not be happy. They need to be held accountable and do their F-ing jobs instead of rubber stamping O'Malley's whims.

136 agree | 135 disagree
Vote on this comment: I agree or I disagree
7:33 AM MST on Thu., Sep. 20, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
Go back to school rich liar, the rich will pay 2 Billion, the poor will be healthier, eat better and possibly stop foreclosures.

163 agree | 162 disagree
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7:12 AM MST on Thu., Sep. 20, 2007 re: "Lower taxes for most; wealthy socked"

Reader said:
You can slice it and dice it and SPIN it but the middle class is going to pay the $2,000,000,000 tax increase!

167 agree | 134 disagree
Vote on this comment: I agree or I disagree
7:01 AM MST on Thu., Sep. 20, 2007 re: "Lower taxes for most; wealthy socked"

Examiner Reader said:
It is about time!, taxes and special treatment for the rich long over due changes needed. It is the right thing to do. Now if the feds get in line with fairness, the 92% majority of us will be grateful due to the increase in cost of living.

156 agree | 156 disagree
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6:19 AM MST on Thu., Sep. 20, 2007 re: "Lower taxes for most; wealthy socked"

Rocko the Magnificent said:
You have to ask yourself who are these "rich" people who O'Malley plans to sock? Are these the hated rich n'er do well kids with a trust fund? No, those people usually pay little or no taxes. The "rich" people who make over $200,000 per couple are your small business owners, doctors, lawyers, corporate managers, etc. Basically, the people who are driving the economy in Maryland. As government in Maryland continues its skyrocketing growth, more and more of the successful income producers in this state are going to go elsewhere. Sure, some will stay and suck it up. But, some will go which will cause O'Malley to raise more taxes which will cause others to go. This is what tax and spend liberals do. This is what the "people" voted for. We may be the richest state in the nation now, but once O'Malley is done with us, we will likely be surpassed by Arkansas on the list.

172 agree | 158 disagree
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