On Thursday, May 3, I wrote Why Maryland is So Messed Up. This article covered some looming tax increases that just passed during a special session on Wednesday, May 16. From now on, single Maryland residents making more than $100,000 and Maryland families making more than $150,000 a year will pay more state income taxes. According to the Washington Post's article, Md. Passes Income Tax on Six-Figure Earners, Maryland's top state-level income tax bracket is now 8.95%, while neighboring Virginia's is 5.75%.
With an accessible commuter line running through Maryland and Virginia, successful Marylanders are now being incented to relocate to Northern Virginia. Maryland isn't known for its stellar school system or education programs either. But in comparison to to the amount of "bad school system" press Washington, D.C. receives, you don't hear much about it. Meanwhile, my friends working in the education system in Baltimore believe that as far as good schools go, D.C. has more solid options. Part of this is because, evidently, Virginia is more progressive when it comes to charter schools.
Even though the education system in Maryland isn't very good (and I doubt putting more money into a failing system will help), part of the reason Governor Martin O'Malley wanted the tax increases is to put more money towards education. The fact that homeschooled children across the country score better on standardized tests and are better stewards in their communities suggests that more money towards education does not make for better-educated kids. I fear the recipe is pretty simple... great teachers and great parents working together... But that seems to be unattainable in our modern world.
Whereas pension programs are causing problems all over the U.S., some suspect Maryland's teacher pension program is extremely underfunded, but we don't know exactly how underfunded it is. Along with the above-stated tax increases, the Maryland legislature moved the teacher pension program costs to the counties... Yes, this is a red flag. It doesn't take much decoding before Marylanders realize they can expect property tax increases in the future – how else can we fund an underfunded pension program in a state that believes taxes are the answer?...
After publishing Why Maryland is So Messed Up, I got some feedback from a few members asking why I didn't do the proper due diligence before moving to Maryland. First of all, these tax increases weren't on the radar when I moved to Maryland. Secondly, I moved for a good job. Not only did I move for a good job, but for a career in which I believe I can serve others to the best of my ability. Remember, I am a big believer in having a purpose... And for now, in Baltimore, Maryland, I have one. As you all know, life is about trade-offs, and when a door opens, it is usually better to walk through it.
What has happened in the Maryland legislature thus far doesn't really affect me. But, the real reason the situation in Maryland is disconcerting is because of where decisions like this can lead us on a macro level. If you watch the mainstream media news shows, you see this argument... "How can middle-class Americans not see that the 1% and multi-millionaires aren't paying their fair share?" The counter-argument is an esoteric defense of how free market enterprise works. But what the free market enterprise side isn't saying and they should is, "Look, if we say you can tax the multimillionaires, that ends up translating into a tax on middle-class Americans. If we give an inch, you will take a mile... " So as we try to understand why the partisan lines so strongly divide us, I believe deception is at the heart of the issue. And it is time for it to stop.
The Maryland tax increases were initially supposed to only affect the wealthy, but here is the reality... two hardworking parents who are juggling hectic schedules and have several mouths to feed will pay higher taxes from now on... I guess you all are the new 1%. How does it feel?
Once again, thank you for sending us your e-mails. We can't respond individually, but we read and consider all of them. Send your question, comment, or complaint to wendy@theprojecttorestoreamerica.com.
I liked your recent interview with Rep. Landry on the subject of retirement for subject members of Congress. There should be NO government retirement plan for ANY ELECTED official of ANY government in the U.S. If they are too young or too short-sighted to have a retirement plan, then you are too young or too "dumb" to be elected to public office anyway.
The government should contribute to the electee's existing retirement plan at a rate similar to that of the electee's former employer or his business or other legal source – up to a maximum amount to be established by law. – Charles
Bidwell comment: Charles, I also like Congressman Landry very much and appreciate him sticking his neck out for his fellow Americans. As far as your proposed solution, I have to say I agree with you. The elected officials are eligible for Social Security and Medicare like other Americans, and the government can have a matching program that is similar to the ones those of us in the private sector have if we have the good fortune to work in a good company.
Ben Franklin thought paper money a good thing and thought it improved the economy of Philadelphia immensely. My great uncle was a local bank President and the bank issues money signed by him. He and the board were personally liable for the bank's deposits. Shouldn't today's bankers have the same exposure? – Anonymous
Bidwell comment: If you have talked to any community bankers lately, you know they are having a difficult time. Meanwhile, the big banks get to gamble with other people's money, and somehow live by the rules of "new American socialism"... getting all the rewards when things work out, but having the taxpayers and regular Americans foot the bill when they don't.
