Governor Martin O’Malley has transformed Maryland into one of the most hostile places for taxpayers to live.  With new taxes on income and smokeless tobacco passed into law after the May, 2012 special session, Maryland is quickly becoming the most taxed state in the country. 

During O’Malley’s current term in office (2007 to 2010*) 232,000 taxpayers have fled Maryland taking $13 billion in income with them.  

Americans for Tax Reform believes that Gov. O’Malley’s left-wing, tax-and-spend policies in Maryland give the American people an inside look into how Barack Obama will act if he is re-elected to a second term. 

During the 2008 Presidential election, then candidate Obama promised not to raise taxes on any family making less than $250,000 a year.  Without a word of resistance from the President or Maryland’s Congressional Democrats, Gov. O’Malley has moved the goal posts and redefined “rich” as any individual making more than $100,000 – or couples who are making more than $150,000 – a year. 

Below, ATR has compiled a comprehensive list of tax hikes Gov. O’Malley has enacted as Governor of Maryland:  

History of Tax Hikes

2012 Special “Tax Hike” Session:

• Tax hike on smokeless tobacco and “Little Cigars”: $5 million
• Elimination of Telecom Property Tax Credits (Corporate Income Tax): $7.4 million
• Elimination of personal exemptions (Individual Income Tax): $51.7 million
• Income tax hikes on individuals making over $100,000 and couples over $150,000: $195.6 million

2012 Regular Legislative Session:

• Flush tax hike: $53 million

2011 Regular Legislative Session:

• Highway and Bridge toll increases: $90 million
• Vehicle titling tax hike from $50 to $100: $52.4 million
• Hospital provider tax: $390 million
• Alcohol sales tax hike from 6-percent to 9-percent: $84.8 million

2008 Regular Legislative Session:

• The Millionaires Tax pushes top marginal rate from 5.5-percent to 6.25-perent: $154.6 million

2007 Special “Tax Hike” Session:

• Senate Bill 2 – Real property transfer tax hike: $14.1 million
• House Bill 5 – “Tip Jar” tax hike, 20-percent “Admissions and Amusement” tax: $8 million
• Tobacco tax hike from $1 per pack to $2 per pack: $133 million
• Vehicle excise tax hike: $36.9 million
• Vehicle titling tax hike (bumped from $23 to $50): $23 million
• Sales tax hike from 5-percent to 6-percent: $603.4 million
• Income tax hike with new rates between 4.75-percent and 5.5-percent: $191.3 million
• State corporate income tax hike from 7-percent to 8.25-percent: $118.6 million

2007 Regular Legislative Session:

• Eliminated use of captive real estate investment trusts for income tax purposes: $10 million

Additional notes:

• Since taking office in 2007, Maryland Governor Martin O’Malley has enacted 19 major tax hikes amounting to a total of $2.2 billion in tax increases.  

• In that same period of time, Governor O’Malley has increased spending by over $1 billion each fiscal year.

• The National Governors Association and National Associations of State Budget Officers’ 2011 fiscal study of the states shows Maryland to have the highest rate of budget growth in the mid-Atlantic region and 7th overall nationally.  

• In the past year Governor O’Malley has tackled social issues that are important to liberal Democrat voters, including Gay Marriage and the DREAM Act – checking off the requirements for his own presidential ambitions in 2016. 

• Governor O’Malley continues to push for a multi-billion dollar wind farm project off the coast of Maryland that would cause higher costs for utility providers and consumers alike. 

*The IRS has not released tax migration data for 2010-2011.  Governor Martin O’Malley is ineligible to run for reelection in 2014 due to term limits.