Letters to the Editor for Wednesday, June 4, 2003 Tax bill would have cost residents much

Editor:

Gov. Robert Ehrlich is taking a lot of heat from Democrats for his recent veto of the tax and revenue bill, and I want to clear up some misconceptions.

The Democrats say that the governor was pandering to corporate "fat cats" by vetoing the new taxes. Actually, the only "cats" affected by this veto are ordinary hard-working Marylanders.

I applaud the governor's veto as a courageous, no-nonsense move that saves working Marylanders from having to hand over more money every time they visit a doctor or walk into a store. The new taxes on HMOs and businesses were pass-through taxes, clear and simple. That is, they would have been passed directly on to patients and consumers.

Even worse, some Marylanders could have lost their health benefits - or even their jobs - because of the taxes' impact on small businesses.

The tax and revenue bill created a new 2 percent tax on health care and would have increased costs for a million Marylanders now covered by HMOs. This Democrat-fueled tax came at a time when health care costs in Maryland increased 12 percent last year alone. HMOs are the least expensive health-care option, and this new tax would have forced low-income Marylanders and small businesses to drop their plans.

Democrats try to justify the HMO tax by saying that other health insurers already pay it. I say that the answer is to get rid of their tax too.

The Republican caucus tried to remove the HMO tax from the tax and revenue bill. Our attempt was rejected 84-45, with only two Democrats voting to support the amendment.

The bill also would have dramatically increased the cost of doing business in Maryland for both small and large companies. These business owners - like all of us - already face property tax increases. Increasing corporate taxes during an economic recession will leave more Marylanders with no jobs and no health-care coverage.

Remember, it was the Democratic leadership who decided to put all the taxes, including the health care tax, in one bill. Then, they tried to fool everyone by saying it was simply a corporate tax bill.

Here's to Ehrlich's courageous veto on behalf of all working Marylanders.

Susan W. Krebs

Eldersburg

The writer is a Republican Delegate representing District 9B.