Much of our current fiscal problem is the result of a stumbling economy, a problem that will work itself out over time. Raising revenue with new and increased taxation is not the way to aid the process of correction.
Here is why. Everyone understands that reducing expenses today is a temporary measure. Next year, the legislature can restore the cuts in a heartbeat. But can anyone in Maryland, or the country for that matter, remember when a new or increased tax has been removed? New or increased taxes are permanent.
Taxes levied on a percentage basis raise even more revenue as the base increases with economic recovery. In the best of times, politicians will find ways to spend any surplus revenue rather than pull back on the taxes raised to cure the original problem. Our problems, exacerbated by political tinkering, will not likely be resolved by more such tinkering.
Warren Updike, Towson