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View Diary: What every business owner needs to know about Bob Ehrlich (27 comments)

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  •  To Republicans, property taxes don't matter (1+ / 0-)
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    because only the little people worry about them.  The only taxes which need to be cut, in their minds, are taxes on large corporations and on billionaires.

    -5.63, -8.10. Learn about Duverger's Law.

    by neroden on Tue Aug 03, 2010 at 11:24:30 AM PDT

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    •  In Maryland they've convinced lots of little guys (2+ / 0-)
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      Misterpuff, marleycat

      to worry about things like a 1 cent increase in the sales tax rate.  "That's a 20 percent increase," Bob Ehrlich says.

      Ok.  So you spend $200 on new school clothes for your kid.  At five percent, the sales tax was $10; now it's $12.

      That's what Marylanders pay for the # 1 public school system in the country, better maintained roads, parks, public safety, etc.

      Steve Lebowitz, Annapolis

      by justdafacts on Tue Aug 03, 2010 at 11:36:43 AM PDT

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      •  That's $12 if you shop in Maryland (1+ / 0-)
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        But next door in Pennsylvania (which has no sales tax on clothing) or in Delaware (which has no sales tax at all) it would be zero; it makes Maryland less competitive.
        •  Valid point to some extent.... (1+ / 0-)
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          Delaware famously has no sales tax, but there's a hidden tax built into the cost of goods and services services sold in Delaware--a gross receipts tax that all businesses pay, and it's cumulative as you go up the feeding chain.  

          Having just returned from a few days in Rehoboth, I saw firsthand the impact of Delaware's gross receipts tax on consumer prices.  In Rehoboth you'll pay fifty cents to a dollar more per drink at a bar than you would at a comparable bar in Maryland.  Ditto for books, sundries, etc.  You won't see it on every purchase, but it's there.

          Pennsylvania doesn't charge sales tax on clothing, but Maryland does.  Virginia charges sales tax on snacks and groceries, but Maryland does not.

          Some states collect more revenue at the local level than at the state level, whereas others, like Maryland, do most of their taxing at the state level.

          The bottom line is the mix of taxes varies from state to state--income, sales, property, excise, fee--but the overall tax burden is remarkably similar, except in the extremes.  Taxes are notoriously low in the deep South and Texas, and notoriously high in the Northeast and west coast.  Maryland's overall true tax burden in right in the middle of the 50 states.

          I wrote about this a while back:

          Feeling Overtaxed?  Talk to your friends in Delaware and Virginia

          Steve Lebowitz, Annapolis

          by justdafacts on Tue Aug 03, 2010 at 04:18:04 PM PDT

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