Sunday, November 11, 2007

Don't tax you, don't tax me, tax the fellow behind the tree

The House of Delegates passed a modified version of O’Malley’s tax increase plan, so now the Maryland Senate and the House must reconcile their differences in each plan that was passed and present something to the Governor.

I am totally against tax increases, and this one is no exception. I would rather see cuts in government services than increases in taxes. However, I am most interested in a comment made by Delegate Kumar who respresents our good neighbor, Montgomery County:

"We are presenting a highly progressive tax package here, and I'm confident that it is going to take care of the low- and middle-income workers of Maryland," said Del. Kumar P. Barve, the majority leader from Montgomery County.

Considering one of the most controversial parts of the plan was a sales tax increase from 5% to 6% (a 20% increase!!!), I don’t understand how Del. Kumar has come to the conclusion that this is a “highly progressive” tax package. What is more regressive than a sales tax increase? This 20% increase in sales taxes will be felt by the poor much more than the middle and upper income folks.

In fairness to the Delegate, the income tax increases that the plan calls for are progressive. However, I don’t understand why Del. Kumar would be proud of a progressive tax in the first place. He has essentially said “we are screwing the rich to take care of the lower and middle class.” If you are going to tax folks, why not tax them proportionally? Raising tax rates on the rich simply because they have a large base income to tax is mindless. At some level, making a determination on wheter the best kind of tax is regressive, proportional or progressive is a judgment call. However, speaking in terms of fairness to all workers, a proportional tax is the way to go. So I am confused as to what the heck Del. Kumar is talking about.

1 comments:

Eludius said...

The Democrats obviously do not understand what progressive taxation means. They harp the new tax package as progressive, yet the tax increases are going to sock the low and middle class right where it hurts.

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