(Alexandria, VA) -- Maryland Governor Ehrlich's veto of the bungled medical liability reform plan (which includes a 2 percent tax on HMOs), as well as a 10 percent corporate tax surcharge passed by the State Legislature, received high praise in a letter today from the 350,000-member National Taxpayers Union (NTU). The citizen group has 6,600 members in Maryland.
"The Legislature appears to be fixated on worsening Maryland's economic climate by raising taxes on corporations and health care consumers alike," said NTU Director of Government Affairs Paul Gessing. "Thankfully, Governor Ehrlich has the foresight to realize that levying more taxes, rather than passing meaningful and necessary reforms, is not the way to solve out-of-control health care costs."
According to Gessing, NTU has already mobilized its activists in Maryland to oppose an override of Governor Ehrlich's vetoes by sending out interactive email alerts (which allow participants to send a letter of comment to their legislator) and by encouraging members to attend a rally in Annapolis on Tuesday morning in support of the Governor.
According to NTU, Maryland doctors covered by the state's largest malpractice insurer are facing a 33 percent increase in their 2005 premiums, which comes on top of the 28 percent increase for 2004. However, the citizen group noted that passing a tax hike on health insurance, which will cost patients more than $60 million annually, is not the solution.
"There is no question that medical malpractice reform is desperately needed in Maryland, and Governor Ehrlich supports placing a reasonable cap on economic and non-economic damages that patients can sue for and recover," said Gessing. "Unfortunately, during the recent special session, the Legislature did away with any effort to cap malpractice costs and instead passed what will be a major tax increase on patients if the Legislature goes through with its plan to override the Governor's veto."
Gessing also commended the Governor's veto of legislation that would impose a "temporary" 10 percent supplemental tax on corporations and establish a mandate for increased spending on higher education. He noted that the Legislature's own analysts expect the bill to increase the state's deficit by over $111 million as of 2008, since the mandated spending levels will surpass the revenues anticipated from the tax hike. "This new tax will only hurt efforts to create jobs and economic growth within the state while doing little to improve the state's colleges and universities," Gessing said.
"Marylanders don't need higher taxes and they most definitely don't need to be footing the bill for doctors' medical malpractice insurance payments or more unaffordable spending mandates," Gessing concluded. "Given these high financial stakes, National Taxpayers Union stands ready to help Governor Ehrlich and his allies in the Maryland legislature resist these ill conceived and unnecessary tax increases."
NTU is a non-profit, non-partisan organization working for lower taxes, smaller government, and more accountability from elected officials at all levels. Note: NTU's letter to Governor Ehrlich is available online at www.ntu.org.