Council and Executive Lay Higher Burdens on Montgomery Residents, Drag Down the Economy

The County Council (last week) approved the budget for the upcoming fiscal year.  In a time of austerity, this budget represents a turn back to bigger government.  While the citizens are tightening their belts, this budget increases spending by 4.1% over last year.  The budget recommended by the county executive and now approved by the county council increases property taxes and increases energy taxes.  Combined with the increase in state taxes (including the jacked-up gasoline tax), this will be a draw down on the county’s economy.

There is a popular opinion that Montgomery County has not been affected by the recession, and therefore the government can increases taxes and spending willy-nilly.  But unemployment in the county is 56% higher than it was in 2008.  A report from the Sage Policy Group concludes that the 80% increase in the state’s regressive gasoline tax is likely to cause the loss of  959 jobs, and a loss of $124M to the economy.   The county budget is only likely to drag down employment and the economy even further.

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