Frequent readers of The Chestertown Spy will note that my hobbyhorse is restoration of the levels of government. The reasons are many-fold. Among them are the need for efficient government (as they are custodians of our tax dollars) and responsive government (as a means of promoting the general welfare). If that belief places me in the tea party or whatever nom-du-jour, then so be it.
To shed another label, this piece is not anti-government. More over, it is not anti-tax. I am anti-tax with no return on investment. Consider these examples.
Example 1: If the State is going to assess a tax on my fuel purchases, then I should be in the right to demand that Annapolis sends more than $60,000 to Kent County to maintain the roads. Last I checked, it was MD-514, MD-20, and MD-213. What if the Feds took your FAA take-off and landing fees and said, “Thanks. Now we trust your Governors will foot the bill for these air marshals?”
Example 2: The State mandates that the County fund early voting. Now we have more than one election day. We have several. More opportunities for fraud and molding the results abound. And the goal for such an endeavor? 8 percent of the electorate per the Commissioners. The turnout for primary season? 3 percent. That was a mandate with results that were less than half the expectation.
I believe that we will have Commissioners who can solve many problems, if decoupled from State mandates that may sound great in Baltimore and Montgomery Counties, but make no sense in the CoK. It may be the case that we have them now, but I’ll let that race sort itself out.
My sights are set on the future of the 36th District. Will we have thinkers who state the case in Annapolis that the Counties need more flexibility to solve their problems? Begging for funds (“speaking Democrat” as it has been called here and on WCTR) only leaves us beholden to Annapolis and more of their unfunded mandates. Funding a geographical educational index with DC money sounds good in an election year (right Governor?). What happens when that money is gone? What happens when the State just leaves it to the Counties to invest in “Race to the top” initiatives, a la the pension plans? We won’t be able to say “help” because we’ll be reminded of all those times “we were done that favor by the State.”
Saying “more flexibility” doesn’t just make it happen. It takes ideas. I was challenged to provide my own ideas, and I’m willing to outline any number of things that won’t just fit on the Gadsden flag. I look forward to seeing if our Delegates will embrace these types of ideas.
- De-couple the Maryland income tax from Federal income tax: Every politically motivated deduction enacted by Congress is a deduction for your State taxes. This gives the State more flexibility, which will allow them to pay the County forward with other initiatives.
- Eliminate the State portion of the property tax: Another example of castrating County government. Got a problem with your county tax? Go to Eutaw Street – in Baltimore. Get the State out of the property tax business. Let local assessors provide accurate assessments. Keep the State from spending tens of thousands of dollars on revenue auditors to determine the taxability of the Prince Theatre (this happened). On a $300k assessment, this will save families as much as $10,080 over the life of a mortgage (in theory the County could pick up this slack, or the money could be thought of in terms of debt retirement).
- Eliminate the Maryland State lottery: If we hate regressive taxes so much, then maybe we should start with this. I am not anti-gambling. Slot parlors are entertainment venues that appeal to swaths of people. They are also anchors for other services like hotels and restaurants. This could revitalize Baltimore neighborhoods or even a town like Cambridge. New industries mean income paying jobs, which get people off the public dole. Lottery employees could just as easily be employed by private casino.
- Regarding education, don’t hand the $20 to the lady at the Acme. If this is your rationalization for State sponsored gambling, write the BOE a check for $9. They’ll be $1 better for it, and you’ll be $11 in the black.
- Slash the sales tax to 2%, apply it uniformly: In Kent County of Delaware, purchases cost 6% less than they do in Kent County of Maryland. Making the tax 2% will generate revenue and come underneath the indifference point to crossing the border for big ticket items.
The tax collected would be reduced by the tax paid, the difference going to Annapolis. Legal defense, medical care, energy below 1500Kwh per month, and financial transactions would be exempt. All else is fair game. Ambulance chasing should be taxed just the same as shoes. From a retail standpoint, imagine what this would do for Kent Plaza, Queenstown, or even Ocean City?
Conclusion: Do I expect or demand any of these to be part of the next legislative session? No. But I will be very interested in the next four years to see how our Delegates will go to bat for the Commissioners to provide local government with more flexibility. I look forward to reading everyone’s thoughts on how we can affect change in Annapolis without ceding more of our local liberties.
Keith Thompson says
Troup, you probably know this already but my references to “speaking Democrat” as heard on WCTR doesn’t imply an editorial position but a line of questioning. Besides, I didn’t originate the term, I just picked it up from the blogs.
On the other hand, your push to have the county be less reliant on the state is I think the most important issue in the race.
MBTroup says
LOL@myself: Washington College, under current sales tax law, would pay zero for their software regardless of the delivery method. I should have said Dixon Valve or another another non-exempt organization. Haste makes waste
The preceding piece was a follow-up to my prior submission to The Spy. The crux of my original argument was that, as it stands, we are already highly taxed and government dependent, to mixed results (generous). Continuing to fund this structure and electing those willing to keep it intact will put us on an unsustainable path. The article gained a mixed reception and resulted in two challenges: 1) see our local government in action and 2)share my own ideas on taxation and allocation. Hope you enjoyed. I look forward to your responses.
MBTroup says
@Keith – I didn’t mean to project anything upon you. We know where it originated. I was just trying to tie all of these recent discussions together.
Keith Thompson says
@Troup, I know you know that, just wanted to make it clear to those who may not have had a chance to listen in to the Election Profiles either here or on WCTR.
Dan says
Troup,
It seems you should run for something.
Bill Parks says
Maryland’s structural deficit can be easily fixed, without increasing taxes or cutting state services, using a program being employed in a state that has a budget surplus of more than $2000 per capita, a low unemployment rate of about 3% and a near nonexistent foreclosure rate. A recent letter in the Kent News, its author arguing for the elimination of the Federal reserve, he called attention to the public’s lack of knowledge of our own monetary system claiming that fewer than one in ten people understand the system. It is that indifference to the monetary and banking that led to our correct circumstance. To get ourselves out of this financial mess we must study the financial system and think differently.
Returning to our state’s budget issues, Maryland can follow the lead of North Dakota. In the 1920s North Dakota, battered by severe fiscal difficulties, chartered its own bank, The State Bank of North Dakota. Depositing all state tax revenue in it, hiring professional bankers to run the operation, following the reserve lending rule established the Federal Reserve, North Dakota now operates its own bank with the profits going to the state treasury as revenue. Using a reserve ration of 9:1, The bank lends money to the state at very good rates. It also encourages state employees to do their banking with them, issuing mortgages and loans, profits from interest payment going to fund state service.
However, the bank is very conservative in seeking other customers. Working cooperatively with privately owned commercial banks, it is careful not to unfairly compete with them.
If Maryland were to create a similar banking system, having similar results on the same scale as North Dakota, it would have a budget surplus of about $10 billion.
MBTroup says
@Dan – I have 4 years to convince myself that I’m bright enough. Or perhaps dumb enough?