Howard County Maryland Blog

Local Politics and Current Events

Did Ken Ulman just move into a higher tax bracket?

Posted by Ed C on Sunday, December 2, 2007

Well, he will have if he files as an individual. As reported in the Baltimore Sun (2.9% pay raises for Ulman, council set to go into effect)

Ulman’s salary increases from $147,000 to $151,263, while the County Council members’ salaries rise from $49,000 to $50,421.

With the new O’Malley tax plan, if Mr. Ulman were to file as an individual he would find himself in the new tax bracket designed for the “semi-rich” and face the new rate of 5.5% for income over $150,000. The really rich, as defined by the Maryland democrats get the privilege of paying 5.75%. (Gov. O’Malley proposed a top rate of 6.5%)

Did the MD democrats index these new income tax brackets to inflation? Did they learn anything from the AMT? When originally passed in 1969, the AMT was designed to target 155 “high-income” households.

From Wikipedia:

Over the coming decade, a growing number of taxpayers will become liable for the AMT. In 2010, if nothing is changed, one in five taxpayers will have AMT liability and nearly every married taxpayer with income between $100,000 and $500,000 will owe the alternative tax. Rather than affecting only high-income taxpayers who would otherwise pay no tax, the AMT has extended its reach to many upper-middle-income households. As an increasing number of taxpayers incur the AMT, pressures to reduce or eliminate the tax are likely to grow.

Just as the failure to demonstrate a little foresight with the AMT, are we in a situation where those that think they are targeting only the “rich” will find that they also hit the “middle-class” over time?

But hey, don’t worry, we live in one of the wealthiest counties and states in America – We can afford it. (Especially if you’re an elected official with automatic, annual pay increases.)

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5 Responses to “Did Ken Ulman just move into a higher tax bracket?”

  1. General Zod said

    In the Sun article the reporter mentions the federal consumer price index and refers to the pay increase as a “raise”. How is it a raise if the increase is keeping with the rate of inflation and the cost of living and does not result in any increase in net spendable income. I find it suspect and convenient that the Executive and County Council gave themselves 2.9% which is a 1/10 of a percent difference below the general employees. Are they trying to save face with the general work force since there has been attempts at unionizing and movements for competitive pay. The only workers who received “raises” were the Fire Dept. Police Dept., and the Teachers because their increases were above the standard 3% cost of living.

    .

  2. Jennifer said

    I have to say, I am reconsidering my support for Ken Ulman. He’s in too tight with developers. I thought a young man wouldn’t be beholden to special interests, he seems bought and paid for already. I think his statewide career is over in the Democratic party. I have heard even the labor unions are angry at him for going back on campaign promises.

  3. observer said

    Jennifer, whatever it takes to get elected is the MO. Even if Ken gets thrown out in the next election, he has already entrenched his troops into the county’s workplace, good luck getting rid of all of these new lifers and trying to change their developer first mentality.

  4. Kenny said

    YouTube – Anyone But Ulman

  5. βαφτιστικα…

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