From Sen. Nancy Jacobs:
Beware! Governor O’Malley is going after the middle class with more of his tax increases. This week he announced a plan to limit the income tax deductions for anyone earning more than a hundred thousand dollars a year by ten percent.
This will devastate the housing market because it reduces the amount of money homeowners can write off for mortgage interest. People have already lost value in their homes. The housing market needs a boost and this will do just the opposite! My office has received dozens of e-mails from people who are very concerned about how it will hurt them.
I will fight this tax increase which the Democrats refer to as a “cap”. They think with that label they can hide the fact that it is really just a tax increase. Its insane to hurt the housing market and overburden working families just so the Democrats can continue to spend uncontrollably.
According to the Comptroller’s Office, Marylanders who make at least a hundred thousand dollars a year pay almost two thirds of all state and local income taxes. O’Malley should not be taxing these families even more. They are the ones who start businesses and create jobs. This move will drive away the enterprising people essential to our economy’s recovery. Higher taxes for good paying jobs will discourage businesses from moving to Maryland.
While families face fewer pay raises, higher bills and tight times, Governor O’Malley continues to be a taxaholic! He may claim lowering your deductions is unavoidable…but his proposed budget is more than a billion dollars higher than last years. I guess he thinks increasing spending is unavoidable too? As the economy limps toward recovery, I think now is absolutely the worst time to raise taxes.