From Friends of David R. Craig:
Harford County Executive and candidate for Maryland governor David Craig announced his plan for a sweeping reform of the individual income tax code that would save taxpayers $2.55 billion in a phased-in approach that puts the state on a glide path toward eliminating the tax altogether. He also previewed further announcements that will roll back the O’Malley- Brown tax and spend legacy.
“The citizens of Maryland now have an opportunity to vote themselves a raise,” said Craig, referring to the individual income tax cuts. “My proposal will jump start economic growth, keep families together by stopping the mass exodus of Marylanders leaving to other states and unleash a flurry of new business start-up activity.”
In the first phase of the income tax reduction that would take effect in 2016, Craig will lower tax brackets to 4.25% for earners across income levels. The personal exemption will increase from the current $3200 to $5000. The savings to taxpayers will be $600 million with an average savings of $352 for married couples or $176 for individual filers.
After monitoring the effects on revenues combined with achieving cost-savings in the budget, Craig would then further reduce income taxes to a flat 3% before the tax is phased out entirely. This would result in a savings of $2.55 billion for taxpayers in the aggregate and $1500 for married couples or $750 for individual filers.
Combined with these proposals will be reductions in Maryland’s budget which has increased from $28.8 billion in actual spending in 2007 to $39.2 billion proposed for fiscal year 2015, a spending increase of 36% over seven years. The state will be able to afford these tax cuts through a variety of budget reforms including zero-based budgeting, reviewing department and agency operations, eliminating coordinating offices of the Governor and accounting for dynamic growth through increases in disposable income that will lead to greater sales tax revenues and an expanding tax base among other heightened economic activity.
“We must re-think the proper role of government in Maryland,” said Craig. “For too long the status quo has gone unchallenged and people are not seeing a return on investment on a range of issues including education, health care public safety and transportation. Are we really better off with over 70 tax, fee and toll increases than we were just seven years ago? Are the schools better, are the roads better, and are we better able to obtain health care or keep neighborhoods safer in 2014 compared to 2007?
In widely-publicized figures from federal government sources, Maryland lost 31,000 taxpayers between 2007 and 2010, more than any other surrounding state and 7th highest nationally. The state lost 6500 small businesses during this same period, which is statistically tied with just one other state as the worst in the region. Unemployment remain a problem with the state chronically under-performing Virginia which is the top state attracting Marylanders looking for a better place to start businesses and find jobs.
Craig will also announce a series of proposals in the weeks ahead that will address the comprehensive list of tax, fee, toll increases and excessive regulatory burdens enacted during the O’Malley-Brown years.
“Martin O’Malley and Anthony Brown put everything on the table in raising levies on every aspect of daily life – ranging from being born, to dying, and to driving a car and having a roof subject to a rain tax. I will also put everything on the table when it comes to reducing them one by one until our state has a rational tax structure that prioritizes individual opportunity over bureaucracy.”
The individual income tax is a particular focus of Craig. According to the Congressional Budget Office, 94% of businesses pay taxes on personal returns as sole proprietorships, partnerships and certain types of corporations.
“Small businesses are the backbone of the economy and job creation nationally, “said Craig. “Maryland’s high personal income tax is a major impediment to attracting, expanding and retaining jobs. It is critical that we eliminate this job killer.”
Maryland counties collect revenue through what is called the “piggy back tax” on state returns. The tax would be held harmless in Craig’s legislation since the 24 jurisdictions count on that revenue for approximately half of their funding.
In fiscal year 2014, the personal income tax is estimated to generate $7.9 billion in revenues, 22% of total state revenues, second only to federal funds. As county executive, Craig twice reduced Harford’s main revenue source – the property tax – saving taxpayers $50 million.
You do not like a flat tax, please give us your reason for that Mr. Craig? We all know you will never get any tax cuts passed with a democrat majority. Typical Rino tells us what you think we want to hear. Think I will keep looking for a candidate okay.
Whats wrong with you turds? You blather and whine about too many taxes and too much spending and yet when a candidate says that he wants to reduce taxes AND spending you claim its all a ruse. I guess ignorant turds like yourselves can only be happy while wallowing in your own crapulence, rising from the muck for the occasional pot shot all the while pretending to be “for” something when in reality you are simply against everything – no matter what it is.
Please take your miserable lives, children and attitudes back to the bowels of Essex, Middle River, and Carney, or from where ever else you came. You’ll be among your own kind who will embrace your stupidity, and you’ll be happier anyway.
And so will we.
@ C Montgomery,
I find your post highly insulting and I grew up in Harford County. It is irrelevant as to the location of one’s domicile. You don’t have to demonstrate such intolerance for others, by calling them names, just because you don’t happen to agree with their opinions.
Having grown up in Harford County I have seen a reduced quality of life in the name of “progress.” I have seen taxes steadily price people out of this county, especially retirees who could no longer afford to live here. The outlandish spending on things such as contaminated waterfront property is beyond astounding.
Craig’s proposal is nothing but political posturing. It doesn’t match up with his behavior over the last eight years or he would have proposed and implemented a county version years ago. Its pure nonsense and if you are too stupid to realize that, too bad for you.
Now Mr. Craig is announcing his plan to phase out income taxes in Maryland. These are nothing more than empty words and political posturing as he very well knows that he could never get such legislation through the MD. Legislature.
A desperate attempt to try and bring up his standing at the bottom of the recent polls. David is an expert at tax and spend.
Mr. Craig has unilaterally ruined Harford County Public Schools. He has cut funding for HCPS. He now wants to eliminate taxes. This plan is not realistic. In fact, anyone who has lived in Maryland for an extensive amount of time knows that this will never pass. Not to mention, how would he raise revenue for the state? He has ruined Harford County and I pray that the citizens of this state do not let him mismanage the entire state.
I guess the teachers union had nothing to do with ruining HCPS……………..
Nope.
The teacher’s union is worthless.
Ruined Harford County? Time to put a for sale sign up at your house then right? Oh wait, you won’t be doing that. I’m right.
I am no David Craig fan, but to say he has ruined HCPS and ruined Harford County is a bunch of extremist rhetoric.
Jobs, Jobs, Jobs….that is his latest message…..He is doing away with maryland income tax…yeah ok.. I’m sure he has the same thinking as letting his HR Director go to school on county dime and only making him pay it back…AFTER HE WAS CALLED OUT ON IT. Don’t do anything till the public finds out
S.S.D.D. from candidate Craig. I’ll be so glad when this primary is over, so I’ll never have to listen to this “governor wanna-be” pontificate on what he’ll do for our state. Come on Larry Hogan! (and watch out Havre de Grace, you’ll have David as your mayor for the 3rd time!) 🙂
So getting rid of the income tax will save my family $1500, which is great, but I’m not clear on how I can start my own business with $1500.
Unless by “start” he means buy 2 computers.
Or by “flurry” he means as in snow flurry, which means, hardly anything.
You know, just say you want to cut taxes to put more money in my pocket, don’t make these lofty connections to new businesses, milk, honey and the good life.
This press release is garbage.
Which makes it more useful than a Harris one.
Mr. Craig is short on details about how he would replace the lost revenue from decreased income taxes. Let me guess, higher property taxes, higher taxes on businesses, more sin taxes, more user fees, etc. While I am all in favor of reducing income taxes as I could sure use the extra money in my paycheck I also want a candidate that offers real solutions – not pie in the sky that has no realistic chance of happening. I’ll support a Republican candidate for Governor but it won’t be Mr. Craig.
How about cutting government spending instead of raising other taxes?
That won’t happen in this state and Mr. Craig won’t be the Republican nominee for governor.
Hey Craig, how about you eliminate property taxes in Maryland?
Lets start with that.
This is so transparent. More of the same empty words by Mr. Craig, but this time it is meant to somehow persuade the public that he can perform miracles if elected governor. Sorry, it won’t work. Recognize it for what it is…Blah, Blah, Blah. Maybe best to retire back to Havre de Grace and save all of us from this nonsense.
wonder when he comes mayor of HdeG, again, are they going to have to change the name of the park. He can try is NO INCOME TAX idea in that small town. I watched the news last night and couldn’t stop laughing. What he has done for the county….he wants to do to the state. I’m sure there are going to be high paying jobs and education payments for close allies and the average state worker is going to get NOT A THING. So watch out HdG, here comes the Craig machine and he will tout his experience and smile on cue………then he and wayne can one up each other on who was the best county employee.
David Craig has somehow managed to both alienate liberal and conservatives and disappoint the middleclass. Quite a trick accomplished by pretending to be fiscally responsible but stetching the cronie capitalism with his buddies to the limit. Guess what filthy Craig, doling out gifts to your buddies is just another form of redistribution of the wealth so you’re no better than a huber liberal pimp surrounded by welfare queens with shovels and development plans. The latest incident being that filthy chemical park purchase and the TIF for Turner and on and on…filthy Craig you are quite the magician having managed to piss everyone off.
David Craig is just full of lies and trying to say whatever he thinks will get him farther. I’ve tried to contact him to speak about issues in the county and he doesn’t even have the courtesy to email me back. Yet he would make an excellent governor. Sure…..
Personally I’m a strong believer in “if you want to dance, you have to pay the fiddler.” We’d all like more money in our pockets. And, yes, Mr. Craig is posturing and preaching to the choir. But I like good schools, safe bridges, roads in repair, mass transit opportunities, clean air and water, passive and active recreational opportunities, historic and cultural facilities, etc. Our national and local infrastructure has been deteriorating since the 1980s when the now-decades long anti-tax, anti-government crusade began. We don’t NEED MacMansions, more and faster cars, bigger trucks, second homes at the beach, seasonal week long vacations to the Caribbean, Colorado, Florida, or Mexico made possible by eliminating taxes needed for government services. Negotiate a fair price with the fiddler–and let’s dance.
Were you aware the state of MD made 47 millions from the safety zone cameras that are of such controversy. They could have rolled that money into road repairs, safety programs, upgrades in marking and lighting, etc. What they chose to do is roll the 47 million back into the general fund – so it pays for stupid crap and waste. The point is if the money already set aside and available was used for the services you list including infrastructure we wouldn’t be in the mess we are. People don’t want to pay more taxes because people know it’s generally pissed away on nothing.
@ Money Tree, you are absolutely right…not to mention the millions of dollars “lost” by Baltimore City Public Schools and the state never held them accountable. Lots of crookery going on if you ask me.
Be careful, sounds less “moderate”and more socialist.
********************************Breaking News**************************************
Candidate Craig promises a Chicken in every pot.
Havre de Grace better watch out. David will be the Director of Administration in Havre de Grace under his son, Mayor Randy Craig. He’s still pulling the strings there now.
I’m sure they both can be called….Mr Mayor…..or would he be called exec….either way, I have come to see Craig as a croony who only cares about who he can use to get elected. He let his HR director go to school, ON OUR DIME, and he continues to try and pull the wool over our eyes. Jobs, Jobs, Jobs….and just where is this money going to come from? A FLAT TAX….yeah ok. We have one of the highest taxes in the area he ain’t gonna do anything to ruin the money coming in. Guess his next ambition is President. I can tell you that there was high hope for him when Harkins up and resigned to take a job, but it’s the same old politician telling us what we want to hear and thinking we are to stupid to know the facts. Hoping that the next county exec is anointed but elected. County workers need raises and it’s a shame that they have to live without a pay raise for HOW LONG? So if he is elected….state workers can expect more of the same from him: NO RAISE, TAXES AND HIS APPOINTEES GET SWEETHEART DEALS ON A HARVARD EDUCATION.
@ Money Tree, you are absolutely right…not to mention the millions of dollars “lost” by Baltimore City Public Schools and the state never held them accountable. Lots of crookery going on if you ask me.
Sounds like Craig is trying to buy the election with promises of “free stuff” for everyone. Unfortunately, some of more capable Republicans in the primary may have to react to this latest stunt / attempt at bribery, forcing them off their messages of smaller, more efficient government.
Kieth; You are 100% correct in that he is trying the “free stuff” approach. The electorate has proven, through at least the last two election cycles, that they much prefer free stuff to free dom.
Unfortunately, it has been going on longer much longer than that, except for that time in the late 1990’s when the Republicans in Congress actually balanced the budget for two years. (I’d never thought I would find myself praising something that occurred under the Clinton Administration, but here we are.)