TAXPAYER BREAKING NEWS, September 2004, continued from Home Page

September 30, 2004. Late start for Vote No Coalition in Montgomery County, reports the Washington Post. "Anti-tax activist Robin Ficker is behind the first two ballot questions. Question A would prohibit the County Council from overriding a charter amendment that limits increases in property tax receipts to the roughly the rate of inflation. Question B would limit council members to three four-year terms.... The coalition is being co-chaired by Becky Wagner, executive director of Community Ministry of Montgomery County, an interfaith group that represents 129 congregations; former Planning Board chair Royce Hanson; and Roscoe Nix, a former county NAACP president and school board member."

September 30, 2004. House votes to loosen gun ban, reports Matthew Cella in the Washington Times. "House members who supported the bill said on the floor yesterday that the District's consistently high homicide rate is connected to the ban on firearms, and pointed out that the number of homicides was decreasing in the 1970s until the ban was imposed. They also argued that the bill would allow law-abiding citizens to defend themselves while continuing to punish criminals who possess or commit new crimes with guns."

September 28, 2004. Charter schools on panel's agenda; Steele named to lead review of alternatives; "Maryland not ready" for vouchers, reports David Nitkin in the Baltimore Sun. "But the Ehrlich administration will not be advocating school vouchers, the lieutenant governor said, steering away from the divisive proposal that critics say drains money from public schools by allowing tax dollars to be spent on tuition at private schools. 'It's not something I'm pushing or the governor is pushing,' he said. 'Maryland is not ready.'"

September 29, 2004. Tax loopholes cost state $162 million, study says; Group claims code favors corporations, the wealthy , writes Andrew A. Green in the Baltimore Sun. "The state has to fill a budget gap of about $400 million next year, but spending after that is expected to create hundreds of millions more in annual shortfalls because of growing Medicaid costs and increased education funding, said Warren Descheneaux, the legislature's top budget analyst. Last year, the state moved to close some tax loopholes, such as those allowing companies to avoid Maryland taxes through the use of Delaware holding companies. But Gov. Robert L. Ehrlich Jr. sees the state's long-term budget problems as the product of too much spending, not a lack of taxes, his spokesman, Henry Fawell, said."

September 29, 2004. Climate Control? From the Wall Street Journal. "We've long been skeptics about the science behind the political campaign to regulate greenhouse gasses, so imagine our surprise to discover that some of the global warmists seem to agree.How else to read a paragraph that was included in a recent Senate spending bill exempting climate programs from having to pass scientific scrutiny?"

September 28, 2004. The Maryland Taxpayers Association says 22 of 33 current senators and delegates who signed an anti-tax pledge during their campaigns - all but five of them Republicans - violated the commitment multiple times because they voted for bills supported by Ehrlich, reports David Nitkin in the Baltimore Sun. ""This is partly a trust issue, not just a tax issue," said MTA Executive Vice President Richard Falknor, "'According to our calculations, the tax burden [of the adopted bills] for this fiscal year and the next four is about $1.9 billion.'"

September 28, 2004. Maryland lawmakers denied role as co-defendants in ACLU suit on homosexual "marriage," reports Robert Redding Jr. in the Washington Times. "''The other seven members who have signed on the motion don't even know that we have been denied yet, so we will notify them,' said Delegate Donald H. Dwyer Jr., Anne Arundel Republican. He indicated that the legislators will immediately start formulating a response to the decision, whether that means filing an appeal or a friend-of-the-court brief."

September 27, 2004. The House moves to restore gun rights in the District of Columbia, reports John Fund in the Wall Street Journal. "Shelly Parker has been threatened by drug dealers as a result of her efforts to clean up her neighborhood. She would like to own a gun for self-protection. Another plaintiff is a policeman who is allowed to carry a gun in his duties as a guard at a court building. But the city turned him down when he asked permission to keep a gun in his home. Another plaintiff is a gay man who was assaulted in another city because of his sexual orientation, but was able to scare off his attacker with a handgun."

September 25, 2004. Employers look at consumer driven health care approaches, reports M. William Salganik in the September 10, 2004 Baltimore Sun. "'The increases have been steep,' said Jeff Levin, general manager of Fields of Pikesville, a retail store selling cosmetics and greeting cards [and member of the Board of the Maryland Taxpayers Association]. The monthly premium for his employees, he said, rose about 25 percent this year to $422 from $335. He said he doesn't want to drop coverage, but is considering shifting to a plan that would require his workers to pay higher out-of-pocket costs with a health savings account." See also: Baltimore Business Journal analysis: "Take your well-being to the bank; New health savings accounts are the 'next step' in giving consumers control of their medical care."

September 25, 2004. "The room was full of shocked expressions at the July 27 hearing of the Wisconsin State Senate. Why? Because I was testifying against their proposed state Taxpayer Bill of Rights (TABOR)," says Rep. Frank Lasee, who had been working for six years to pass a Taxpayer Bill of Rights for Wisconsin, in a report from Chicago's Heartland Institute. "A real Taxpayer Bill of Rights will protect the taxpayer. The draft we talked about in the Senate would not."

September 24, 2004. GOP wrestles over bid to oust Busch, reports Thomas Dennison in the Gazette. "'I look at it as a delegate from Anne Arundel County and from the perspective as a former member of the Anne Arundel County Council, and I know how important it is to work with the leadership in the House and Senate,' said Del. David G. Boschert (R-Dist. 33A) of Crownsville, who told The Capital and The Gazette that he was not wild about O'Donnell's statements. 'We have a speaker from Anne Arundel County, and I can say from my perspective that I'm not one who is overjoyed at giving that up.'"

September 23, 2004. Has the charter revolution come ... and gone? asks Justin Torres in The Education Gadfly. "What's the real risk? Putting most of the available energy, political capital, brain power and money into 'helping'districts engage in chartering rather than devoting those (limited) assets to advancing the frontier of independent charter schools: removing caps on their numbers and enrollments, creating multiple authorizers, strengthening school autonomy, securing adequate funding and facilities, etc."

September 23, 3004. Heritage Foundation scholar Rea S. Hederman, Jr. gives one cheer for the tax extender package. "While these extensions offer substantial savings to millions of taxpayers, other elements of the 2001 and 2003 tax cuts, such as the marginal rate reductions, did more to increase economic growth. ‘Bonus depreciation,’ which allows businesses to write off expenses more quickly, will soon expire and was an important factor in the past year’s business investment boom. The reduction of the taxation of capital gains and dividends also helped boost the economy over the last year by reducing the cost and risks of new business creation. Congress should make these pro-growth tax cuts permanent in order to encourage economic growth."

September 23, 2004. Ehrlich nominates ex-federal official for state health post, reports David Nitkin in the Baltimore Sun. "Others considered for the job included former Sen. Robert R. Neall, who withdrew late in the selection process; and Sen. Andrew P. Harris, an anesthesiologist whose candidacy drew criticism because of his strong anti-abortion views. McCann said he is pro-abortion rights. The secretary's position is subject to confirmation by the state Senate, where Democrats hold a 33-14 majority."

September 23, 2004. Maryland ponders deep health care cuts; Leaked after gag order, a draft trims $480 million, reports David Nitkin in the Baltimore Sun. "Because an improving economy could make many cuts unnecessary, Ehrlich staffers said they hoped to avoid the kind of outcry that followed the leak of the health department's budget planning document yesterday, as lawmakers and health advocates digested the scope and specificity of the reductions under consideration."

September 23, 2004. Institute on Religion and Democracy report documents imbalance in mainline church human rights advocacy. "Knippers expressed her concern for the future of human rights advocacy in the mainline [churches]: 'After the Cold War, some church leaders apologized for ignoring human rights abuses behind the Iron Curtain. Today the churches seem to be ignoring human rights abuses in other parts of the world, most notably the Arab world. Did these churches really learn anything from their failures during the Cold War? We need an entirely different approach for the 21st century.'”

September 21, 2004. Montgomery County Taxpayers League urges county tax cap, reports the Montgomery County Taxpayer, September 2004 issue.

September 19, 2004. See analysis of Maryland State Department of Education's Annual Yearly Progress Report from Zalee Harris of Education Doctors. "Never mind the fact that when you do the math, the majority of our students scores at or below the basic level of these secret assessments and therefore, do not meet the state's PROFICIENCY target level. Never mind the fact that you do not understand anything you just read. After you read the [official state] press release, read it again, then read for impact, and then study the 2005 Annual Yearly Progress (AYP) Reports for every school district in the state of Maryland."

September 18, 2004. Spending plans stay wrapped in secrecy; Governor refuses to share agency budget details with Assembly Analysts, reports David Nitkin in the Baltimore Sun. "Under Maryland's budget process, lawmakers typically only make cuts to the budget submitted by the governor. If they add programs, they must also include a funding source, such as a new tax. Maryland's governor is considered to have the broadest budgeting authority of any state chief executive in the nation."

September 17, 2004. Grover Norquist of Americans for Tax Reform questions anti-tax credentials of Republican Virginia Attorney General Jerry Kilgore, reports Jeff E. Shapiro in the Times-Dispatch. "Norquist, an adviser to the Bush White House, said his organization will remain active in the Virginia tax fight. "I can give helpful advice to the Republican Party," said Norquist. 'When the Republican Party maintains its brand like Nike or Coca-Cola as the party that isn't going to raise taxes, it wins.'"

September 15, 2004. One-third increase in malpractice premiums OK'd; Approval comes on top of a 28% rise this year, reports William Salganik in the Baltimore Sun. "Even at less than the requested increase, Redmer's decision would push premiums for obstetricians, the highest-risk specialty, to more than $150,000 next year. Most in the debate have called for a special legislative session that could head off the latest round of premium increases, but there has been no agreement on how to do that."

September 13, 2004. Thomas B. Fordham Foundation to sponsor charter schools in Dayton, reports the Fordham Foundation. "Ohio Department of Education approves Fordham as first nonprofit sponsor of community (a.k.a. charter) schools—both the Foundation and the Department expect this new role to open doors for Dayton-area kids to gain more quality school choices." For more information, see Fordam's website.

September 14, 2004. Cesar V. Conda sets out "Five Easy Pieces: How to incrementally reduce the tax bias against saving and investment" in the National Review. "Reforming the tax code piece-by-piece produces less simplification than either the flat tax or the national retail sales tax, to be sure. It would also retain the economic distortions caused by the myriad of special tax preferences in the current tax code. But if done correctly, incremental reform would achieve most of the goals of drastic tax reform — without the economically painful transition costs and the equally painful political costs of ending popular tax deductions."

September 12, 2004. CNN/Money reports that Maryland has second-highest state income tax burden, at $40.16 per $1,000; only New York State is higher. For ongoing coverage and full analysis of state and local tax burdens, see State Finance Report from the Tax Foundation. The Tax Foundation analysis has Maryland ranking 24th highest in state+local taxes combined, the equivalent of 9.9% of income; for federal+state+local taxes combined, the Tax Foundation ranks Maryland 9th highest, the equivalent of 29.9% of income.

September 10, 2004. State Senate president Mike Miller wants to create a statewide "stop-loss" fund to subsidize medical malpractice award payouts, report Catherine Dolinski and Steven T. Dennis in the Gazette. "Senate Minority Whip Andrew P. Harris (R-Dist. 7) of Cockeysville [said] that transportation fees should be used for transportation purposes [not to subsidize court-awards]. 'Our registration fees are plenty high,' said Harris, one of two doctors in the General Assembly. 'Certainly, they ought to be directly related to automobiles, and trial lawyers are not related to automobiles -- I guess, I should say, unless you're ambulance chasing.' Harris said he understands why creating a stop-loss fund may be tempting, but he is not convinced it deserves funding at all. 'All you're doing is providing relief for physicians who would have to pay higher premiums," he said. 'In the long term, you make the problem worse because you just put more money into the pot. We'll attract even more personal-injury lawyers to bring these suits. People for whom it was not attractive financially all of a sudden will say this pot is large.'"

September 8, 2004. Tom Neumark presents The Market-Based Solution to Maryland's Teacher Shortage, a new report from the Maryland Public Policy Institute. "The time and expense of that coursework discourages many good candidates from becoming teachers. Plus, students in traditional teacher preparation programs are often among the weakest academically as measured by their scores on college entrance exams. If Maryland wants more and better teachers, it must expand its applicant pool to include highly qualified candidates from outside the realm of education." On the issue of effective public education staffing, TBN also calls attention to the ground-breaking Maryland study, Teacher Certification: An Idea Whose Time Has Gone (October 2001) and a companion piece, A Matter of Principals (January 2004), both by the Abell Institute in Baltimore.

September 7, 2004. Patients pushed to get political; Maryland physicians to seek help lobbying on insurance, reports John Wagner in the Washington Post. "T. Michael Preston, executive director of the Maryland State Medical Society, known as MedChi, said some doctors are advocating more 'militant' actions, including work stoppages and withholding medical services from unsympathetic legislators and trial lawyers. Although his organization has not embraced such approaches, the talk reflects an unprecedented degree of anger and frustration, he said.

September 5, 2004. Advocates for Cheseapeake Bay churn waters; slow cleanup prompts look at litigation, reports David A. Fahrenhold in the Washington Post. "Ernst tells his audiences that he wants more litigation, a more politicized Bay Foundation and more aggressive punishment for polluters from the EPA."

September 3, 2004. Maryland could double the amount it spends on school construction if it follows a proposal by state Treasurer Nancy K. Kopp to borrow $150 million more a year for school construction over the next eight years, report Sean R. Sedam and Diana Mota Morgan in the Gazette. "'It's how much money do you want?' Ehrlich said. 'Do you want to up your debt load a little bit? William Donald Schaefer's not crazy about that. We're a little more open to it.'"

September 3, 2004. As Maryland and Virginia delegations party, lobbyists pick up the tab, reports Matthew Mosk and Spencer S. Hsu of the Washingotn Post. "Ehrlich dismisses talk of influence peddling, saying these events are 'just a chance to have fun. Period.' Virginia GOP Chairwoman Kate Obenshain Griffin agreed, saying, 'Everyone is just having a good time together here and getting to know each other.'"

September 02, 2004. Clubbed: A succession story in Virginia, reports the National Review. “'This shows that if you screw us at the state level and raise taxes, when you run for Congress we’ll get you,' said Ferrara. 'If you look to move up, we’ll get you.'"

September 2, 2004. Grover Norquist and Americans for Tax Reform laud keepers of tax pledge, reports Christina Bellantoni in the Washington Times. "'We'll be very active in highlighting who voted how, reminding voters who kept and who broke the pledge,' Mr. Norquist said. 'If I were a tax increaser, I would not feel warm and fuzzy about my future political career'."

September 1, 2004. Judge refuses to block use of electronic voting machines, reports Stephanie Desmon in the Baltimore Sun. "'This system is a train wreck,' said the lead plaintiff, Linda Schade, a Takoma Park activist and a founder of a group called TrueVoteMD. 'I've been on this issue for a year, and the testimony [in this case] made me even more concerned than I was before. Without a paper trail, Maryland voters cannot have confidence that the election results are going to be secure'."

September 1, 2004. Terence Jeffrey comments in Human Events on the coming fiscal civil war. "Congress should repeal the Medicare prescription drug entitlement before it really takes hold. That would eliminate an $8 trillion liability before too many Americans felt they had made too deep an investment in it."