O’Malley Planning An Exit?
Unless a special session convenes and passes the O’Malley tax increases before January 1 those tax increases will still leave a suppurating sore in the Maryland budget. For every day past 1 January that the new taxes aren’t imposed the larger the deficit grows for next fiscal year.
In short, unless the General Assembly drapes itself over the coffee table and lets the governor have his way with it, taxes will have to increase more significantly than the governor has let on or there will have to be actual, honest to gosh, cuts in programs, not just cuts in rates of growth.
As former Delegate Herb McMillan points out the O’Malley tax package, after the chump change cuts he has proposed, will cost a Maryland homeowning family earning between $50K and $120K about $300 more in taxes. Increasing this bill is not likely to be popular with the Republican caucus, not that it matters, or with the relatively large number of fiscally conservative Democrats in the General Assembly.
Trending: Thank You
Martin Watcher observes that even this current tax increase only slaps a bandaid on the budget wound fixing it only for two fiscal years and requiring the governor to to through this exercise again just as the the 2010 gubernatorial campaign is heating up. Why would he do that? Is there something happening before then that would make him unconcerned about winning a second term?