According to a story in tomorrow's Washington Post, Montgomery County Executive Ike Leggett testified that the income tax increase proposed by Gov. Martin O'Malley is too high:
In testimony before lawmakers yesterday, Montgomery County Executive Isiah Leggett (D) said O'Malley's proposed top tax rate of 6.5 percent is too high. Leggett, who is pushing an alternative plan with a top rate of 5.5 percent, said Montgomery's tax burden would be greater than Virginia's and the District's under the plan.
"Just like the governor, I believe strongly in progressivity," Leggett told lawmakers. But, he added, "I am very concerned about the long-term effect it will have on Montgomery County's role as the economic engine of the state."
Karen Syrylo, state taxation consultant and member of the Maryland Chamber of Commerce, said that O'Malley's proposal has led some business owners to voice a desire to relocate to Northern Virginia.
Leggett's proposal has a great virtue: it keeps our tax rates much more competitive with neighboring jurisdictions. The share of the income tax take from Montgomery also has to be lower than the projected 80% under Gov. O'Malley's plan. However, see Adam Pagnucco's arguments (Part I and Part II) for why the Gov's plan is too regressive.
