Montgomery County GOP

Message from the Chairman:

Republicans are Ready

Many Democratic commentators in advance of last week's Presidential Health Care Summit predicted that the meeting would highlight a lack of Republicans ideas. They assumed the Summit would provide momentum for the stalled Obama health care bill. They must have been sorely disappointed.

Instead of facing the caricatured "Party of No," the President and Congressional Democrats engaged Republicans prepared with solid alternative proposals and reasoned critiques of the existing Obama Care proposals.

Republicans used the Summit to showcase many specific ideas for restraining health care cost increases. These include allowing more interstate insurance competition, empowering patient choice with health saving accounts and reforming medical malpractice tort laws.

Rep. Paul Ryan of Wisconsin, the ranking Republican on the House Budget Committee, was especially effective in using cost estimates of the Senate Democratic bill from the nonpartisan Congressional Budget Office.  Calling the Senate bill "full of gimmicks and smoke-and-mirrors," Representative Ryan said it "has 10 years of tax increases, about a half a trillion dollars, with 10 years of Medicare cuts, about half a trillion dollars, to pay for six years of spending."

"Now, what's the true 10-year cost of this bill in 10 years?" he continued. "That's $2.3 trillion."

Similarly, a week ago Maryland Senate President Mike Miller called on Republicans to provide their own budget proposals to address the state's deficit.  At first some media commentators speculated that the Democratic leader intended to "show up" the Republicans.   However Senators Pipkin and Brinkley came well prepared - see the following article.  Among their ideas, they proposed requiring government employees contribute a greater share of their pension costs.

Both Senators Pipkin and Brinkley could also contrast Governor O'Malley's sorry record as a budget manager with his predecessor's. Seven years ago Governor Bob Ehrlich faced a $1.8 billion budget deficit.  He tackled it through effective management and without tax increases.   He did so even while funding the "Thornton Commission" education increases.

To be fair, some of Governor's Ehrlich's success should also be attributed to the success of Republican pro-growth economic policies at the national level.  The 2003 tax bill reduced tax rates on long-term capital gains and dividends to 15% and the top marginal income tax rate to 35%. It also accelerated many of the provisions in 2001 tax bill, which were supposed to be phased in more gradually. Finally, it increased tax deductions for small businesses and families.  

The 2003 tax cuts helped the economy out of recession by putting more dollars into the pockets of consumers, small businesses and investors.   Unemployment peaked at 6.3% within just two months after signing the cuts into law, before beginning a steady decline to 4.4% in 2007. Similarly in the early eighties Ronald Reagan's economic policies produced a "V" shaped rapid rebound. 

Largely because of the increased economic growth, the Bush tax cuts did not substantially reduce tax revenues.  Revenues in fact were not far from the 2000 pre-tax cut baseline and over the 2003 pre-tax cut baseline in 2006.  In part this is because, despite the rate reductions, taxes paid by millionaire households more than doubled from $136 billion in 2003 to $274 billion in 2006.

That provides a very sharp contrast with Governor O'Malley's "Millionaire" tax increase.  The tax has backfired against the state by producing less revenue as those taxpayers who have previously shouldered the largest share of the state's tax base have shifted in unprecedented numbers their residences away from Maryland.  

Montgomery County has lost $4.6 billion in taxable income from tax years 2007 to 2008. More than 82% of that drop comes from taxpayers with incomes of $1 million or more, county records show.  During that period, the number of income tax returns above $1 million fell by 27% and nearly 10% of the county's "millionaire taxpayers" who filed taxes for 2007 stopped filing in Maryland altogether in 2008.

Certainly, we face far different economic conditions in 2010 than in 2003.   However we already learned from experience that pro-growth policies produce jobs and encourage recovery.  Unfortunately President Obama and the Democratic Congress have ignored these lessons.  As a result our economy remains weak and we need to be worried about the impact that ending those 2003 tax cuts at the end of this year will have in 2011.

While our state, county and nation face serious challenges, there should be no doubt that Republicans are ready to tackle our problems with proven ideas and a track record of success.  That is why it is time for a change.

Mark Uncapher

Montgomery County Republican Chairman

This was my first time attending the Red Scarf Day and my first time inside the State House.  I was quite impressed with the beauty of the architecture, but more importantly, I enjoyed seeing our legislative representatives at work.  I know our club [Chevy Chase Republican Women's Club] was a big supporter of Jessica's law; however, I learned that the law has not been effective due to poor implementation and loopholes. The "Red Scarfs" attended a rally at which Ginny Meerman spoke.  Ginny was a powerful witness when Jessica's Law was passed (by reluctant Maryland Legislators in 2007).  Her words are powerful - because they are motivated by personal painful experience as a child. This is what she had to say:

"In 2007, many people joined together to show 'strength in numbers' when the first "Jessica's Law" bill for Maryland was introduced to the Maryland Legislature.  Because of those "numbers", the House Judiciary Committee had no choice (after much public scrutiny and Bill O'Reilly being called in to expose Chairman Vallarios' and other committee members - staunch opposition) but to pass that bill and it was eventually signed into law.  However, since 2007, child sexual predators have been able to 'enjoy' a loophole in that law - the language in Jessica's Law was written to sentence 1st degree offenders to 20 years minimum.  What has happened is the defense attorneys for these perpetrators have been able to have cases heard as 2nd degree offenses (plea bargains, etc.), which only call for a minimum of 5 years in prison (with the possibility of parole, in some cases, less than 2 years into the sentence)."

Following the rally we proceeded to the hearings in the Judiciary building. It was interesting to watch who was really paying attention as the various laws were debated for and against.