Published: February 23, 2008 09:02 pm      

Maryland House GOP leaders decry tax increase

The expansion of the sales and use tax to include computer services is one of the most egregious examples of the get-it-done-quick attitude of the 2007 Special Session.

It was pushed through in the dark of night with minimal public input. The haphazard process that surrounded the passage of the measure makes if difficult, if not impossible, to implement.

The members of the House Republican Caucus pointed out all of these issues during the floor debate and worked to remove the expansion of the bill, however our efforts were soundly rejected.

What is most troubling about this expansion of the sales and use tax is the devastating consequences it will have on Maryland’s knowledge-based economy. This is a sector of the economy that Maryland has tried to cultivate but it is also a very mobile sector that could easily do business in another state. Therefore, our Caucus supports a repeal of the computer services sales tax.

The Democratic leadership in the House and Senate would have you believe that the only way to responsibly repeal this tax is to pass new taxes to make up the revenue, This simply is not the case. Moreover, it illustrates how out of touch they are with Maryland's taxpayers.

The citizens of Maryland are already struggling with high utility and grocery bills combined with the large tax increases that have recently become effective.

Enough is enough; Marylanders cannot afford any more new taxes. Maryland has a spending problem, not a revenue problem so additional taxes are not necessary. The computer service tax can be repealed without trading it for other taxes and without shifting the burden to local governments.

The House Republican Caucus has identified $203 million in budget reductions that would cover the revenue lost from repealing the computer services tax.

We have reached across the aisle and offered these reductions to the House leadership in good faith. We are hopeful that our proposal is seriously considered so we can reach a bipartisan consensus to repeal the tax without adding additional burden to Maryland’s families.

Anthony J. O‘Donnell

House Minority Leader

Christopher B. Shank

House Minority Whip