Income taxes not such a bad thing after all
The tax filing deadline, April 15, has come and gone. This deadline brings with it many disgruntled taxpayers. However, when filing my taxes a couple thoughts came to mind:
First, I am joyful to have a job in the first place. Unemployment is soaring nationwide. Hence, I cheerfully contribute a small percent of my income to health, education, public safety, etc.
Second, if it weren't for my income taxes, as well as the tax dollars of other hardworking Marylanders, Maryland's general fund revenue write-downs could be worse off than they are. Tax dollars help build schools and hospitals, provide services to vulnerable Marylanders, provide economic investment to put people to work and provide a safety net to those who have lost employment.
Maryland's current year revenue shortfall is over half a billion dollars. While Maryland is one of 47 states facing a shortfall, I am grateful that Maryland's deficit isn't as high as Arizona (which is nearly 16 percent of the total general fund or $1.6 billion).
There's a common misperception that Maryland spends too much on government programs and too often our elected leaders use a cut-only approach to dealing with our state financial shortfall. When comparing state and local spending as a share of personal income, Maryland ranks 48th. To balance our budget while we educate kids, promote health and keep communities safe will require more from us in the future, after the economy recovers.
Income taxes are only one source of state and federal government revenue (and nearly half of all Maryland's state revenue). Yet, the income tax cookie jar has fewer crumbs and our elected leaders are scared to adopt alternative revenue raisers (i.e. extend sales tax to services, make permanent the millionaires' tax, levy Internet sales, etc). Without diverse revenues, we will always come up short.
Hence, this is why I willingly pay my share, so that there's continued investment in education, health, human services and public safety.
Branden McLeod, Baltimore
The writer is a policy analyst with Maryland Budget & Tax Policy Institute, a project of Maryland Association of Nonprofit Organizations.