EXCUSE THE INTERRUPTION BY A MARYLAND TAX ON SMALL BUSINESS! 2008 will be a new year for perspectives. One example of a new perspective is technology and its computer component to which many professionals and executives participate. As one who has limited "techie" skills, I am dependent on skilled computer repair professionals. Should such labor services be subject to Maryland Sales Tax? NO!

Computer technology has been temporarily but rudely interrupted by Maryland's Legislature and its Governor. At the conclusion of a happy family Thanksgiving gathering, I stopped by a neighbor's house. Part of that pleasant neighborhood visit was a not so pleasant discovery from a guest who started a computer services business in Baltimore that exports to other states and overseas. This business owner told me that he was "amazed to find that, in its quest to find 'soft targets' to raise tax revenue, the Maryland Senate Finance Committee has arbitrarily decided that a Maryland sales tax should now apply to computer services companies, most of them small in size".

My friend's firm has two offices, one in Baltimore and the other in Pennsylvania. As the owner of this small business, his decision may have to be " to have no future services performed or billed out of the Baltimore office, should the tax be levied on this type of service business". Furthermore, he noted that that if the tax is levied, he will have to ask his existing employees "to move to Pennsylvania immediately." The matter is of such concern to this businessperson that he may have to discourage other computer business executives from locating or expanding in Maryland.

A similar concern was expressed in today's Daily Record Opinion page by another small computer services owner, Stephen Kolbe, President of a local IT consulting firm staffed by 30 employees, most of whom live and work in Baltimore County. Mr. Kolbe added that the computer service industry has been provided with "practically no notice or means to offer commentary on this matter".

What is the message for taxpayers, small business managers and citizens in Maryland? The answer is clear: It is a mistake for Maryland's economy AND its taxpayers.

Another service business has a "special session" challenge: auto repairs. As a member of the Board of Directors of AAA Mid-Atlantic which represents thousands of automobile drivers, I volunteered to assist our regional association in blocking such a discriminatory tax against auto repair firms in Maryland. This Maryland tax would have been in contrast to the other states served by the national AAA.

Like cars made more complex by computer technology, the service providers for home and small business computer users are increasingly essential to the public. Not only is the customer hurt, but also his service provider. That service provider is often not the multi-state corporation that gives CEO's a huge bonus when bad business results actually warrant that exec's departure. We are talking about SMALL businesses, like the one my friend started on his own creative skills and management.

The danger of this kind of tax getting final approval by the Md. Legislature in the upcoming session is clear. It reflects the questionable maneuvering to place a special session as a detour by Senate President Mike Miller, House Speaker Busch, and Governor O'Malley, around an honest effort to reduce government spending and apply the tax increases fairly. Maryland is no longer a heavy industry state. New technology and health care are critical to our economic future.

Would Miller and the trial lawyers ever permit a tax on legal fees? Not likely, as proven by the skilled maneuvering to prevent tort reform in reducing the excess lawsuits against doctors. The necessity for legislative responsibility is increased for less of a "closed corporation" whereby one of the General Assembly management sets all the rules. An example of this necessity was expressed by the small computer services owner when he heard a report that the Md. Senate President has said publicly that, once elected, a State Senator has only to follow his or her views rather than the needs of the taxpayer electorate. The computer service sales tax is an intrusion on those needs.

Let us remember and apply the same lesson that helped create this State of Maryland and the American nation: "TAXATION WITHOUT REPRESENTATION IS TYRANNY".

Labels: Maryland tax on small business

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WHERE ARE THEY NOW? -- WHEN WE NEED THEM! WILLIAM JAMES , JAMES CLARK & MAC MATHIAS These thoughts come forth on Halloween, as I wish that three ghosts of the past might return! Even if only for a brief visit, two of Maryland's finest legislators could bring much to judgment and honesty to our State House in Annapolis. William James and James Clark both served in the Maryland State Senate as members and Presidents of the Senate. As a young "reformer" wanting action to improve honesty and results from the Legislature, Bill and Jim were my inspiration. In the process of working with fellow activists to form a "citizens commission" to achieve these goals, I was given the opportunity to learn from both of these leaders.

Just recently, I plunged into a remarkable story of one of these role models:

"Jim Clark: Soldier, Farmer, Legislator: A Memoir by James Clark Jr. "

From Jim Clark, I learned the most about land conservation needs and opportunities in Maryland, encouraging me to take on the responsibility of chairing the Maryland Environmental Trust. During the years of working with the Trust and its mission of working with landowners / farmers to consider easements as a means of protecting open space for conversation purposes. I remember walking through woodlands and wetlands with Jim Clark to absorb the meaning of citizens' action for land use reform and protecting our natural environment. Jim and Dick Wills, my father and Director of Agricultural Programs at McDonogh School, were kindred spirits who viewed farming and agriculture as a bedrock of what made America strong.

Also, from Bill James I learned the value of honesty and modesty in getting REAL work done. The strength of character and judgment in his work enabled bipartisanship. As an example of this approach to State Government leadership and management, Jim Clark's "Memoir" recalls the 1964 story of efforts to secure support for a Senate bill to limit funds expended in political campaigns. From their perspective, in Maryland, service in the State Senate is a public responsibility-by example of personal conduct and integrity, as well as legislation passed or rejected.

These two leaders did lead - not by noise or ego - but by being consistent and fair in the tricky pathways of Maryland politics. Their example is appropriate for today's two presiding officers: Mike Miller and Michael Busch - and, as the rhetoric from the Governor increases, Martin O'Malley should look to two of his predecessors: Republican Theodore McKeldin and Democrat Harry Hughes who met difficult challenges and connected with citizens/taxpayers. This is more honest than blaming fiscal problems on predecessor and fiscal conservative Bob Erhlich who, in that same spirit of direct communication with the public, faced 4 years of partisan opposition from the Legislature's management.

What are the fundamental differences in public policy between these two groups of politicians? Integrity and consistency are the differences!

Jim Clark, Bill James, Ted McKeldin, Harry Hughes shared a commitment to State government living within its means and acting, not just talking about a balanced budget. Today, O' Malley, Miller and Busch demonstrate little beyond the rhetoric claiming that increased taxes will only affect the "ultra rich". Realistically, small business and middle income producers will be hurt under "plans" that promise everything, but do little to apply iscal discipline in government operations. Further concern emerges as "spender Comptroller" Franchot seems to be for more personnel to audit taxpayer income tax returns than to use the Comptroller's office to control costs.

Bottom Line: Watch the so-called "special session" for at least some evidence that integrity and fiscal discipline are on the first and second floors of the State House.

FROM THE STATE OF MARYLAND TO THE UNITED STATES:
WHERE IS BIPARTISANSHIP WHEN WE NEED IT?

Examples from the Past: Margaret Chase Smith - Decency over Joe McCarthy

Another "good ghost",from America's past, should sweep across this year's Halloween sky: Maine's Margaret Chase Smith, the first woman to serve in the U.S. Senate. It was Smith, a Republican early in her Senate years, who had the courage to call the shots accurately in her warning about the dangers of Sen. Joe McCarthy and his tirade against those with whom he disagreed -- lumping them into the categories of "Communists", "traitors", "dangerous liberals", then blending these descriptions into what his demagogic view classified as dangerous to American values. Margaret Chase Smith had the courage to be the first to sound the real alarm against McCarthy's false rhetoric. She did this in the spirit of honesty and bipartisanship when McCarthy, another Republican, went too far.


Examples from the Present : The Baker-Hamilton Commission on Iraq
Congress :More Work/Less Talk

Recently, I heard a 21st century call for bipartisanship from two Americans to whom we need to listen: the co-chairs of the Iraq Study Commission - James Baker, former Secretary of State, and former Congressman Lee Hamilton, President of the Woodrow Wilson Policy Center. At a dinner sponsored by the Churchill Centre, these two real leaders issued serious warnings as they received the 2007 Winston Churchill Leadership Award. Bluntly and courageously, Jim Baker and Lee Hamilton remind us that we need to follow the Churchill example when he led a coalition government during the evil Hitler/Nazi era of death and destruction on Europe. When has the current White House management listened to or taken seriously the thoughtful recommendations of the bipartisan Iraq Study Group? The silence has been deafening!

While we are not living in the torment of "the Blitz" bombings on London, the United States needs to step up to the plate and meet our responsibility of world leadership. This means a President who will honestly include members of the opposite party for consultation and reaching a balance and middle ground in major legislation. We are not seeing that in children's health insurance needs or clarity in what may be "around the corner" with Iran. The stakes are too high in the aftermath of Iraq, with billions of dollars of debt piling up as a legacy for generations .

Neither is the Congress free from rhetoric. Its Democrat leaders may usefully reflect on the approach of freshman Maryland Senator Ben Cardin, recently dubbed "Maryland's Senator Fix-It " in a Washington Post commentary. The article spoke of Cardin's willingess to cross the aisle, citing as examples: working to achieve results in legislation providing incentives for good teachers to work in the neediest schools; getting the Army Corps of Engineers involved in clean-up of the Chesapeake Bay, one of the nation's most significant estuaries. It is not "Sunday talk show headliners" who get the real work done - like Cardin at the Federal level and former Gov. Bob Erhlich at the State level .

Politicians today need to follow the examples of Jim Clark, Bill James, and Margaret Chase Smith who speak from our past; and Jim Baker, and Lee Hamilton who now call for action in honest bipartisan cooperation to get the job done in Maryland, and the nation.

ANOTHER GOOD SENATOR WHO IS HERE! -- CHARLES "MAC" MATHIAS

During the post-Halloween weekend, heading west -- with 2 of the 4 grandkids -- to Clarksville Pike to visit Clark's Elioak/ Animal Petting Farm, I was hearing the voice of State Senator, Jim Clark, call "from above" :

"George , great that you are taking those kids to the farmland that has been in my family since 1797 ! As soon as you get back to your place, be sure to include Mac Mathias in your "good ghosts" story.

Jim, how could I have forgotten! But, Frederick County native Mac Mathias continues with us as a real person, now living in Chevy Chase. He is over 80, but very much a part of life and the real meaning of good government in Maryland and the U.S. Senate.

In the spirit of the same respect I have had for others in my "good ghosts/good leaders" commentary, Mac must be included! He had the courage to take on the challenge of making sure that balanced/moderate jurists were the kinds of Supreme Court justices that this country needed --- during and after the Watergate scandals. Knowing Mac and Ann, on Isle au Haut during the early summers in Maine added to his being a role model for public service. Just two years ago found us sitting together at a Middle East seminar taught by another Maryland resident Bruce Laingen, mutual friend and U.S. envoy to Iran during the hostage crisis where he and other Americans were held prisoner there for 400 days.

Mac and Bruce remind us all that public service is still achievable over selfish politics!

Labels: Ben Cardin, Bob Ehrlich, Jim Clark, Maryland politics

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