Tech Tax repeal bill: how they voted
A bill to repeal the computer services tax passed a major hurdle today when it was voted out of the Senate Budget and Taxation Committee. The bill would replace the $200 million "tech tax" with a 3-year tax hike on personal incomes over $1 million, and $100 million in cuts to transportation projects and other spending. Here's how the 10-5 vote came down:
YEAS: Chairman Ulysses Currie, Prince George's County Democrat
Edward DeGrange, Anne Arundel County Democrat
Verna Jones, Baltimore Democrat
Edward Kasemeyer, Howard County Democrat
Nancy King, Montgomery County Democrat
Nathaniel McFadden, Baltimore Democrat
Donald Munson, Washington County Republican
Douglas J. J. Peters, Prince George's County Democrat
James Robey, Howard County Democrat
Bobby Zirkin, Baltimore County Democrat
NAYS:
David Brinkley, Carroll County Republican
George Edwards, Western Maryland Republican
Rona Kramer, Mongtomery County Democrat
Richard Madaleno, Montgomery County Democrat
J. Lowell Stoltzfus, Lower Eastern Shore Republican
After the hearing, Miller said he was "disappointed" in Madaleno and attributed the freshman senator's refusal to fall in line with the governor's proposal to being "young" and "probably nervous."
Miller hinted darkly that Madaleno, a freshman senator and fiscal expert, was "pegged for leadership" but had let down the boss, who is known for rewarding loyal senators with coveted committee leadership slots. Told of Miller's remarks, Madaleno paused, smile slightly and said he thought the comments were "ironic." "This is the first tax increase I haven't supported in six years, including many, many bills that passes in the House" when he was a member there, he said. "I just think this is the wrong time to be doing another tax increase."
Comments
Seems to me that Sen. Munson from Hagerstown got it right. He has 400 computer jobs in his district and many would move to PA if the computer tax remains, and he has at most 41 millionaires in his district. He's an anti-tax Republican, and yet he voted for the millionaires temporary 0.75% tax increase to save jobs in his district.
Why can't some of the Montgomery County Senators get it right? Sen King and Sen Garagiola have the courage to stand up for the average person and even the well-to-do computer workers earning "only" $100K. Why not Sen. Madaleno?? Sen. Madaleno's district certainly has many more computer workers whose jobs might move to Virginia, than it has millionaires and jobs they've created. And Sen. Madaleno probably even has in his district more one-person businesses and consultants who offer computer services (and who would probably end up eating the 6% sales tax on their gross income!) than he has millionaires in his district.
Oh yeah, someone making $2M per year would have to pay an extra $7,500 per year for 3 years -- would this really be the straw that breaks the camel's back and makes that person move out of state? Very doubtful! These millionaires would have left Maryland long ago for Florida, which has zero income taxes. But will tech jobs held by many computer workers in Madaleno's district go to Virginia if the computer tax remains -- very likely.
Congrats to Senators King, Garagiola and others like them in Montgomery County. Let's get the computer tax repealed and keep well-paying jobs in the state. We all hate higher taxes, more crowded highway and streets, and so on. There is no good solution to this problem, but the best of the bad solutions is the one that the Senate Committee came up with and it's time to pass it!
Posted by: Sylvia4IT | April 3, 2008 1:01 PM
Sen. Madaleno is trying to cut transportation funding to block the Purple Line. He is a long-time opponent of the light rail line, which is opposed by a fancy Chevy Chase country club whose golf course the trains would go past. They've raised thousands of dollars at fundraisers for Purple Line opponents like Doug Duncan and Bob Ehrlich.
It's too bad Sen. Kramer went along with this maneuver - it was her father who originally proposed the light rail line when he was county executive.
Posted by: futurepurplerider | April 3, 2008 10:40 PM