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To: Residents of Legislative District 5B
From: Wade Kach
Re: Recent Vote on the Slots Referendum
Date: November 17, 2007

Dear Constituents,

There has been confusion regarding my vote in support of HB 4 - Video Lottery Terminals – Authorization, which calls for a referendum allowing voters the chance to decide whether they want slots in certain locations of Maryland. Contrary to the unfortunate misperception that last night’s vote could have somehow ended this farce of a special session, this vote was a vote against even higher taxes in Maryland.

Some, who—like me—have vigorously opposed the planned tax hikes, contend that, had the referendum legislation failed to pass, Senate President Mike Miller would then kill all of the tax bills. Unfortunately, that would have been impossible for him.

Since the Senate passed its tax package on November3 (SB 2) the only step left before O’Malley’s signature would have been passage in the House of Delegates. In fact, that is precisely what Speaker Mike Busch promised he would do.

Of course, Speaker Busch has the necessary votes to pass SB 2 in the House. In other words, a defeat of the referendum bill would not have brought the session to a screeching halt, but rather forced the Speaker to adopt a far worse plan.

Though I wish it were the case that Senator Miller could have brought an end to the special session, the fact is that he no longer has any control over the Senate’s tax package. President Miller has no authority to pull that bill back to the Senate; it is in the sole possession of the House.

Believe me; Mike Miller knew that he had no real control over the situation. He went spouting off about derailing the special session knowing full well that it was out of his hands.

Regrettably, some folks did not realize this and therefore accepted the notion that a vote against HB 4 was a vote against O’Malley’s plan. If that were really the case, I would have been the first no-vote.

Although the House tax bill is bad; the Senate version is demonstrably worse. For example: the Senate tax hike bill includes taxes on services—not in the House bill; exemption increase to $2,600—the House bill increases it to $3,200; does not include exempting the trade in value of a car from the increased sales tax—the House bill exempts 50% of the trade in value from the sales tax.

In the days ahead, you will read about negotiations between the House and Senate. If HB 4 had failed, the worst possible tax scenario—enactment of SB 2 by the House as promised by Mike Busch—would be law by now.

I can not in good conscience vote to burden the working families of this state any further, and have consistently voted against any and all new or increased taxes. My voting record is eminently clear. I am certainly in utter disagreement with Governor O’Malley over his tax grab and the entire liberal agenda. My votes are all geared toward fighting tax increases and living within our means.

There is absolutely no merit to the idea that killing the referendum would have subsequently killed the tax packages; I wish it were that simple. Think about it: why would so many of the most liberal pro-tax Democrats have voted against this if they thought that it would bring down the whole plan and derail the tax increases? That simply does not add up.

Earlier this month, the House Republicans set up a slots workgroup which devised three amendments to HB 4, assigning me to take up one of these amendments. I introduced and won passage for this Republican amendment, giving counties designated as slots sites greater control over the process.

I would never allow my disapproval for the O’Malley pro-tax agenda to override the imperative to block higher taxes. I have always stood with my party and will continue to do so, but if trying to make the other guy look bad trumps doing what is right for the taxpayers of this state, I will vote for the taxpayers!

This was not a hard decision for me. No political courage was necessary, because this was a clear case of ultimately voting against more taxes.

There is a second bill due for a vote tonight that would set up O’Malley slots plan. I am voting against this because it fails to ensure that Maryland reaps the optimal return from slots, and it gives certain connected people undue advantages in the process of securing a slots license.

We are so blessed in Northern Baltimore County with thoughtful and discerning citizens, capable of critically examining the details of legislative action in Annapolis. I am thankful that my friends and neighbors in North County will undoubtedly understand these intricacies.

Sincerely,

Wade


References:

HB 4 - Video Lottery Terminals – Authorization (http://mlis.state.md.us/2007s1/bills/hb/hb0004t.pdf)
SB 2 - Tax Reform and Transportation Investment Act of 2007) (http://mlis.state.md.us/2007s1/bills/sb/sb0002t.pdf)