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Wow, I just looked at the taxes and fees I'm paying with my telephone bill. My service provider is Verizon, and they are providing telephone, tv and internet. Those are the "services" I pay for on the monthly bill. However, I was pretty surprised when I looked closer at the bill to see what "non service" related fees I'm paying. Here's the list"

Taxes, Fees & Other Verizon Charges.

• Gross Receipts tax - Long Distance
• Telecommunications Access of MD Fee
• MD Gross Receipts Tax Surcharge
• MD 911 Fee
• Federal Universal Service Fund Surcharge Long Distance
• MD Federal Universal Service Fund Surcharge
• Federal Excise Tax
• MD Local Tax
• Federal Subscriber Line Charge
• PEG Grant Fee
• Video Franchise Fee
• State Sales Tax

This list of taxes and fees is actually longer than the rest of the bill. I don't blame Verizon for this since they are just collecting and passing through most of these fees. But, this is getting pretty ridiculous.

So much for Maryland's nickname calling themselves "The Free State."

Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114

410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com

Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist

©2009 - RichSellsHomes, All Rights Reserved
©iStock Photo - Licensed for Use

With States and Localities all looking for money to prop up falling revenues, little is off the table. Politicians though, try to stay away from the "third rail" language of tax increase. Except of course, when it comes to the rich, where it seems to be acceptable.

Maryland is no exception to the "tax the rich" rule. Last year, in an effort to close the budget gap, the Maryland legislature enacted a law which raised the top marginal income tax rate to 6.25% for those earning over a million dollars a year.

Pretty simple, extra money for the State coffers, and they won't mind because after all, they're rich and can afford a few bucks.

So far, as it turns out, rich people do mind. Preliminary statistics from the income tax returns are showing that more than a few of the "Millionaire Marylanders" are missing. They may show up again but right now about a third of them seem to have disappeared.

In April 2008, about 3000 million dollar salary Marylanders filed taxes on April 15th. In April 2009, that figure dropped to about 2000, oops! Maybe they're procrastinating this year and filing late :)

Did they all leave Maryland? Probably not, but I'm sure some decided to look for a more "tax friendly" place to live. Making a million bucks a year, they can surely afford it. 

I guess the State can do one of two things since they still need the extra money that the "rich" seem to be so unwilling to give up. Squeeze more out of the ones who are still here, or, drop the salary figure of who is considered "rich." 

Uh oh, I think we might be in trouble Marylanders, or as Mike Saunders says, "BOHICA."

Frequently, the decisions we make, have unintended consequences.

Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com

Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist

©2009 - RichSellsHomes, All Rights Reserved

E-ZPass is a system that actually works pretty well. In the Northeast you can drive from Maine to Virginia and not have to stop at a toll booth.

By using an E-ZPass transponder you can drive thru the toll booth without stopping and the toll will be automatically deducted from your account.

When your account falls below a dollar threshold, they automatically recharge from your credit card.

This is obviously a tremendous time saver for commuters but it's also been very effective for people who use toll booths on an infrequent basis. Any time a driver can save time by not having to stop and pay a toll, it's a good thing.

The system isn't free, you do have to keep a balance in your account. I'm assuming that the States can use the float on this money because they sure don't credit me with any interest.

The actual expenses for the State Transportation Autorities to provide toll collecting is less than providing a toll collector and having to handle a cash transaction. It's also been estimated that an E-ZPass lane handles 4 - 5 times more traffic than a lane with a toll collector.

All in all, its a good system so why make any changes? Because revenues for the Maryland Transportation Authority are down as I'm sure it is for all other States as well.

States are quickly learning that they don't have to raise taxes, which causes a furor, instead, call it a service fee and slip it by when nobody's looking.

The Maryland Transportation Authority is proposing a $1.50/month service charge on the E-ZPass account. No additional benefit, just an additional fee. Yep, charge the user for using a system that's more efficient. Call it what you will but it's just another tax. $18/year, no big deal.

Our State legislature is in session for the next three months and we should all be scared because they're looking to tax just about every service to increase revenues. 

Here is a quote from one of our State Senators (Capital Newspaper, January 21, 2009). How arrogant is this statement from Sen. John Astle, D-Annapolis? "If you don't want to pay the buck-fifty, you can go through the gate. No one is being forced to take E-ZPass. A buck-fifty a month, some people spend that much on soda every day."

I'm sure most people will keep their E-ZPass if the increase goes through. It really is that good. We'll wonder some days though, where did all our money go.

Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com

Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist

©2008 - RichSellsHomes, All Rights Reserved

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