Comments on: Parallel Maryland – How Wide the Divide? http://marylandonmymind.wordpress.com/2008/04/15/parallel-maryland-how-wide-the-divide/ Politics, Democracy and More in Maryland Sat, 05 Dec 2009 15:29:47 +0000 http://wordpress.com/ hourly 1 By: Rich Madaleno http://marylandonmymind.wordpress.com/2008/04/15/parallel-maryland-how-wide-the-divide/#comment-471 Rich Madaleno Wed, 16 Apr 2008 13:26:30 +0000 http://marylandonmymind.wordpress.com/?p=123#comment-471 In response to this post and your previous post, I would say there is a great deal of intersect between these two groups. The roughly 2,400 millionaires who live in Montgomery County generate nearly 25% of the county's income tax revenue. The income tax provides almost half of the county's revenues, and the school system accounts for roughly half of the county's budget. Therefore, one could argue that these millionaires pay one-quarter of the school systems budget. Put another way, they are paying to educate 35,000 children each year. I will leave their property taxes to pay for the other county services they may use. I totally agree that taxing income over $1 million at a rate higher than income below $1 million is more progressive. However, I think we also have to review what we are getting for this new tax. This new bracket is being used to back fill the lost General Fund revenue that is being diverted to transportation by way of a partial dedication of the sales tax. This new money is not going to education or public safety or any other program to improve education or fight gangs. This money will be used in Montgomery County to build a new interchange at Georgia and Randolph and to improve intersections around the Bethesda Naval Hospital. I doubt that small improvements to traffic congestion in these neighborhoods will result in decreased gang activity. Finally, I worry about what all these new taxes do to our county's ability to meet its needs. Last summer, Ike Leggett and Marilyn Praisner implored the county delegation to only support state tax increases to the extent that the county would retain flexibility to raise its own revenues. It would be ironic if this new progressive state bracket ends up damaging the ability of the state's most progressive local government to continue to deliver quality services. Just taxing millionaires more for the sake of taxing millionaires more is no great accomplishment in my book. In response to this post and your previous post, I would say there is a great deal of intersect between these two groups. The roughly 2,400 millionaires who live in Montgomery County generate nearly 25% of the county’s income tax revenue. The income tax provides almost half of the county’s revenues, and the school system accounts for roughly half of the county’s budget. Therefore, one could argue that these millionaires pay one-quarter of the school systems budget. Put another way, they are paying to educate 35,000 children each year. I will leave their property taxes to pay for the other county services they may use.

I totally agree that taxing income over $1 million at a rate higher than income below $1 million is more progressive. However, I think we also have to review what we are getting for this new tax. This new bracket is being used to back fill the lost General Fund revenue that is being diverted to transportation by way of a partial dedication of the sales tax. This new money is not going to education or public safety or any other program to improve education or fight gangs. This money will be used in Montgomery County to build a new interchange at Georgia and Randolph and to improve intersections around the Bethesda Naval Hospital. I doubt that small improvements to traffic congestion in these neighborhoods will result in decreased gang activity.

Finally, I worry about what all these new taxes do to our county’s ability to meet its needs. Last summer, Ike Leggett and Marilyn Praisner implored the county delegation to only support state tax increases to the extent that the county would retain flexibility to raise its own revenues. It would be ironic if this new progressive state bracket ends up damaging the ability of the state’s most progressive local government to continue to deliver quality services.

Just taxing millionaires more for the sake of taxing millionaires more is no great accomplishment in my book.

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