9613-C Harford Road, #527
Baltimore, MD 21234

January 5, 2005

Dear Maryland Taxpayer:

Early last Friday morning state senator Norman Stone and delegate Ted Sophocleus once more broke their promise to all Maryland voters to "oppose and vote against any and all efforts to increase taxes."

These two politicians helped hang a big tax albatross (HB 2) around the necks of Maryland families. They did this by voting to tax HMO premiums for an estimated total of $400 million plus, spread over the next six fiscal years. They and other Annapolis taxers piggybacked this levy onto a weak "reform" measure sold as relief to physicians from crushing malpractice insurance premiums.

The Maryland NFIB described the problem with this measure very well - - -

"A 2% premium tax on small business owners and employees who have HMO polices would be a significant tax increase and likely too much to bear for many."

No other Maryland Taxpayer Protection Pledge Signer voted for this burdensome and misleading package.

Last fall, MTA called out Pledge Signers who had broken their promise to Maryland taxpayers more than once in 2004: senator Stone had by then broken his Pledge four times last year, and delegate Sophocleus three times. According to the Baltimore SUN, Stone responded that he had "a near-impeccable record opposing taxes since elected to the Assembly in 1962" while suggesting he didn't know the "ground rules" when he signed the Taxpayer Protection Pledge.

MTA wonders what part of "oppose and vote against any and all efforts to increase taxes" this near-lifetime legislator didn't understand.

Enough is enough. MTA strongly urges you to ask your delegates and state senators to uphold governor Bob Ehrlich's expected veto of this $400 million deadweight on Maryland families. (HB 2).

We urge you to get in touch with your legislators right away, by telephone, or by making an appointment to see them in person in their home district - - - before they vote on the veto next Tuesday.

As Grover Norquist, president of Americans for Tax Reform, said:

“Raising the tax on HMO premiums does not help Marylanders to better afford healthcare. I hope Governor Ehrlich will stand by the promise he has made to his constituency and veto this tax increase.”

And stay tuned to our website mdtaxes.org for taxpayer breaking news affecting your family's budget, your livelihood, and your future.

Best Wishes.

Dee Hodges, president
Richard Falknor, executive vice president