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After a long night of horse trading and amendments, the Maryland House and Senate passed a bill that authorizes a sixth gaming facility (casino) and provides tax breaks for casino operators in Maryland. The big news for taxpayers out of Annapolis wasn’t that the bill was passed, but the way it was passed and the handouts included.  Here are a few interesting tidbits from WBALabout the shameful way the House and Senate conducted itself, “The Senate vote came at around 12:15 a.m. today.  It came 30 minutes after the House of Delegates approved the bill.  The Maryland House of Delegates approved the bill by a vote of  71-58.  The vote came at around 11:45 p.m. Tuesday night.  This morning at 10 Gov. O'Malley signed the package, which still needs voter approval in a referendum.  The 71 votes represents the minimum number of votes needed to pass a bill in the House of Delegates.”

The Taxpayers Protection Alliance (TPA) today announced the release of "Being Played,” (click here to view the ad) the second in a series of television ads opposing the recently-announced special legislative session in Maryland to expand gaming.  Governor O’Malley also wants to form a special secret commission to set tax rates for casino operators.  Creating a commission to determine tax policy solves nothing; any recommendations it makes are non-binding.   This is just a ploy to prevent legislators from openly supporting casino special interests at the expense of Maryland taxpayers before the fall elections.  It is a textbook example of politicians trying to avoid accountability.  Earlier this year, the Maryland General Assembly passed and Governor O’Malley signed legislation raising income taxes on workers making more than $100,000, families earning in excess of $150,000.  The state increased the marriage penalty and shifted pension costs to localities, engaging in some creative accounting to hide its unfunded obligations.   Maryland’s state-local income rate now stands at 8.95 percent -- the fourth-highest in the nation.  At the same time, Governor O’Malley has been trying to convene a special session to work out a plan to give a tax break for casinos, particularly a casino at National Harbor.  This special session could cost Maryland taxpayers $15,000 per day.

Taxpayers expect a certain level of hypocrisy from their elected leaders.  But, this week Maryland Governor Martin O’Malley may have taken the prize for the most blatant and shameless form of hypocrisy.  Earlier this year, the Maryland General Assembly passed and Governor O’Malley signed legislation raising income taxes on workers making more than $100,000, families earning in excess of $150,000.  The state increased the marriage penalty and shifted pension costs to localities, engaging in some creative accounting to hide its unfunded obligations.   Maryland’s state-local income rate now stands at 8.95 percent -- the fourth-highest in the nation.  At the same time, Governor O’Malley has been trying to convene a special session to work out a plan to give a tax break for casinos, particularly a casino at National Harbor.  The plan calls for reducing the tax rate on gambling revenue from 67 percent to about 52 percent.  This week, the Democratic Governors Association (DGA) sent an email to their supporters praising the U.S. Senate’s passage of a bill that holds tax rates constant for families earning less than $250,000.  It also accuses Republicans of opposing “middle-class tax cuts.”  The incredible irony of this message is that it comes from the DGA, which is chaired by Maryland Governor Martin O’Malley, one of the biggest proponents of tax increases in the United States.  (click here to view TPA’s television ad opposing the special session).

On Friday July 13, The Taxpayers Protection Alliance (TPA) announced the results of its phone survey on tax rates and building a casino at National Harbor in Maryland.  The results showed that state residents remain skeptical about plans to build the casino and give tax breaks to out-of-state casino operators.  The most common response to the question on how a respondent felt about the National Harbor proposal was “It is wrong to lower taxes on casinos while taxes on Maryland families are going up.”  This corporate welfare debacle started in May when the state legislature passed a massive income tax increase that will hit many families that are far from “rich.”  The new, top state-local income rate will rise to 8.95 percent -- the fourth-highest rate in the nation.  This hike will not just affect individuals and couples; small business owners’ profits are taxed as personal income.   Additionally, the state increased the marriage penalty for working couples, which will significantly hit families with children, and also shifted pension obligations from the state to localities.   Since then, Governor O’Malley has been trying to convene a special session to work out a plan to give a tax break for casinos, particularly a casino at National Harbor.  The plan calls for reducing the tax rate on gambling revenue from 67 percent to about 52 percent.