Friday, July 13, 2012

The Office of the Maryland Gov. Martin O'Malley: The Fact By Rick Abbruzzese, Director of Public Affairs

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July 10th, 2012

A recent report by Change Maryland, a GOP-led, partisan organization, erroneously makes an outdated claim that the number of millionaire households in Maryland has decreased. A quick look at the numbers reveals the facts:

FACT: Change Maryland is a GOP-led, partisan organization founded by a former Ehrlich appointee, failed congressional candidate and failed would-be candidate for Governor.

FACT: The number of millionaire households in Maryland has actually increased 19% during the O’Malley-Brown Administration, according to the non-partisan Phoenix Institute. Today, Maryland has the highest percentage of millionaire households in the United States, and our overall share of the United States’ millionaire residents has actually increased since 2006. Lastly, the balance between Virginia and Maryland remains statistically unchanged during that time.

FACT: Governor O’Malley inherited a $1.7 billion structural deficit from an Ehrlich Administration that increased spending by nearly 34% over 4 years. In 2007, Governor O’Malley called a Special Session to resolve the inherited structural deficit through a balanced approach of unprecedented cuts to spending and yes, new revenues. The decisive actions taken during the 2007 Special Session – including $550 million in cuts and a penny’s increase on the sales tax – would have eliminated the structural deficit by Fiscal Year 2012 had our country not been plunged into recession by George W. Bush’s reckless spending and tax cuts that overwhelmingly favor the wealthy.

FACT: According to the highly respected and non-partisan Federal Funds Information for States, Marylanders have the 3rd lowest state and local tax burden adjusting for income, ahead of only South Dakota and New Hampshire. And, according to the Tax Foundation, when you factor in all of Maryland’s sales tax exemptions, Marylanders pay the 9th lowest adjusted state and local sales taxes in the nation (including adjustments for zero local sales taxes and exemptions on services, gasoline, groceries and more).

Here’s a sales tax comparison with our neighboring states:

Lastly, the Tax Foundation also finds that Maryland has the 8th lowest tax burden on mature businesses, Ernst & Young ranks Maryland as having the 12th lowest tax burden on new investments, and Ernst & Young and COST indicate Maryland businesses pay the 2nd lowest combined state and local taxes as a share of total state and local tax revenue (only Connecticut is lower).

Here’s a corporate tax comparison to our neighboring states: