Republican Ideas Have Merit Even in “Blue” Maryland

By James Pelura

Chairman, Maryland Republican Party

November 7, 2007

One year ago, Maryland voters decided to deny Governor Robert L. Ehrlich a second term and elect Baltimore Mayor Martin O’Malley as the next Governor.

Then-Mayor O’Malley campaigned on the promise of a better Maryland under Democrat leadership in the State House. Unfortunately, we are now witnessing what Democrat leadership actually means.

Presently, we are in the midst of a Special Session of the Maryland General Assembly to raise taxes to pay for out-of-control spending.

Martin O’Malley firmly believes that the road to financial stability lies in pulling money out of the private sector in the form of higher and regressive taxation. Conversely, Republicans believe that the road to financial stability lies in keeping more money in the hands of private citizens through lower income taxes and sales taxes, encouraging businesses to stay and even expand their operations in Maryland, and enticing out-of-state businesses to relocate in Maryland. As Republicans, we believe this can be accomplished by offering low corporate income tax rates and less government interference and regulation. It is not hard to understand that more business activity translates into more jobs.

Republicans believe that Martin O’Malley’s plan to raise the corporate income tax rate, raise the sales and gas tax rates, and apply the sales tax to an ever-enlarging list of services will seriously harm Maryland’s economy. Such wrong-headed policy will take money out of the pockets of Maryland citizens and will keep businesses from establishing themselves and growing in Maryland. Instead, these policies may force these small businesses out of Maryland altogether.

Recent polls show that a majority of Marylanders oppose Martin O’Malley’s tax hike plan and want O’Malley and the General Assembly to make spending cuts before coming to Maryland families and asking them to make even more sacrifices. Republicans, Democrats, and unaffiliated voters alike oppose this action by the Governor.

It is noteworthy that Martin O’Malley’s tax plan would hurt those Maryland families least able to afford these new taxes. Increases in the gasoline tax and sales tax, in particular, are very regressive in nature. O’Malley’s tax hike will have a huge negative impact on the wallets of Maryland citizens, increasing the cost of commuting, groceries, clothing, rent, and household goods, to name a few. The non-partisan Tax Foundation states that under O’Malley’s tax hike plan, Maryland would end up as the 43rd most business friendly state in the U.S., just a few spots from last place. It has been estimated that Maryland will lose thousands of jobs if these tax increases go through, which means that quite a few Maryland families won’t have the benefit of a paycheck to make ends meet.

The Republican Caucus has twice put forth a budget alternative that would balance the budget by simply slowing the growth of spending – all without placing a greater burden on working families. It is clear that Maryland state government has a spending problem, not a revenue problem. If Maryland families must live within their means, so should the state government.

The Maryland Republican Party has been overwhelmed with phone calls and e-mails from citizens angry that their pockets are being picked yet again. In fact, quite a few Democrats and unaffiliated voters have called to let us know that they are going to register as Republican. I know that they are not alone, and there is an important date on the horizon for those not currently registered as Republican. To vote in the Republican primary on February 12, 2008, you need to change or declare your party affiliation as Republican by November 19, 2007.

There is overwhelming opposition to Martin O’Malley’s massive tax hikes and his destructive plan for our state. This gives me renewed hope in the majority of Marylanders to also see the value in exploring the Republican philosophy of environmental conservation, quality education, and economic opportunity for all. We are focused on generally elevating the standard of living for all of our citizens. Everyone should have the opportunity to succeed and prosper.

Low taxes, faith in the individual, smaller more efficient government, and a robust private sector ultimately results in an expanding economy. In fact, a quick review of recent history shows that lowering taxes actually increases revenue to government treasuries. It works every time it is tried.

Maryland Republicans have the correct ideas and Maryland citizens are starting to listen.

Governor O’Malley and the members of the Maryland General Assembly must listen and have the duty and obligation to “do the right thing” for all our citizens.