Maryland: But We Have to Tax Somebody!

By April 3, 2008Taxation

From The Washington Post:

A Maryland Senate panel voted to impose a three-year surcharge on the income of millionaires yesterday as part of a broader plan to repeal the state’s new tax on computer services.

The 10 to 5 vote sends the legislation, which has deeply divided Montgomery County lawmakers, to the full Senate. Senate President Thomas V. Mike Miller Jr. (D-Calvert) predicted that it will be passed in the waning days of the legislative session, which is scheduled to end Monday.

Still very doubtful the tax increase passes, but if so, a couple of points:

  • Computer services companies warned that the tax increase could drive many of them out of the state, for example, to Delaware. So instead of taxing a business with a million dollar income, some Maryland legislators want to tax individuals with a million dollar income. We suspect some of these individuals are more mobile than local businesses.
  • A favorite saying of ours: Tax something, and you get less of it.
  • Temporary. Three years. Then it will expire. Oh, sure.
  • Granted, the Tech Council of Maryland is pleased. Give them credit for hard work.

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