Guest Post by William Neil
"Let Us Now Praise Famous Men"
Dear Citizens and Elected Officials:
This essay was never going to be the usual post legislative session follow-up “report” to Part I, which appeared at the end of February, and which was entitled Making Millard Tydings Proud, Economic ‘Justice’ in Annapolis. Even when I was an advocate for NJ Audubon’s legislative goals in New Jersey in the 1990’s, I had an inclination to avoid euphoria over what we had managed to achieve. That avoidance wasn’t difficult: it was usually grounded in fact, because most of the time what we really wanted, and what was desperately needed in New Jersey - a state land-use plan with regulatory teeth - was not politically attainable, due to the power of the real estate industry and the Right’s success in achieving an anti-statist and anti-regulatory iron curtain.
However, something happened along the way to Part II: a quickening of the national political pulse – on the left, at least - an outpouring of speeches, essays, studies and one powerful book (among other good ones) that seems to have swept the serious reading public off its feet. These I will name shortly, to set the broader context in which I will examine “economic justice” in Annapolis, and thereby temper my praise for its “famous men.” First though, let’s focus in some detail on what happened there between the end of February and the last day of the legislative session, Monday, April 7th, 2014.
I. The Annapolis Balancing Act: Gestures Towards the Working Poor; Estate Tax Relief for the Job Creators
On that last day of the session Maryland’s new minimum wage bill passed the House of Delegates by a vote of 87-47, bringing the state’s new minimum wage to $10.10 per hour, but not until July 1, of 2018. (Maryland thus becoming only the second state to achieve the federal goal of $10.10) This was the second vote by the House, necessitated by the fact that the Senate had made changes from the original version which the House passed way back on March 7 by an 89-46 margin. (HB 0295; SB 0331). The Senate did not pass their version until Saturday, April 5th, by a vote of 34-13. Of equal significance to me, as a reporter on the political economy, is the fact that on the same day the House first passed its minimum wage bill it also approved The Maryland Estate Tax - Unified Credit Bill – and pay attention to the comparative margin – by a whopping 119-14 tally. (HB 0739; SB 0602). The Senate voted for this bill on March 20th, the Vernal Equinox, 36-10.
To help keep these voting numbers in proper political perspective, the Democratic Party in Maryland has a 98-43 majority in the House of Delegates, more than two-to-one, and in the state Senate it is almost three-to-one, 35-12. Since Maryland Democrats and their presidentially hopeful Governor, Martin O’Malley like to portray themselves as “progressive,” these majorities indicate that they are a fair test of what the party stands for in the sense they have the numbers to pass what they want; they cannot plead “gridlock” as the Democrats can do in Washington, DC (where even there they could do better - by overthrowing the Senate filibuster rules.)
There is more detail to add from this Annapolis session, however, plenty more. Before the House passed its first version of the minimum wage bill, Delegate Heather Mizeur (D-20), a gubernatorial hopeful in the June 24th Democratic primary this year, offered an amendment which would have created a 2% annual adjustment upwards for inflation – a reasonable and important linkage, since the federal lack of one was a major factor, aside from the missing productivity gain adjustments, that allowed the federal minimum to fall so far behind its 1968 gold standard of purchasing power. Mizeur’s amendment was buried, 8-124. She did, however, for her courage, gain a $5.00 campaign contribution from me, and I don’t have many to give out, since I am a poor man in a rich man’s county.
This failed inflation adjustment for wages is not trivia, it has real practical and symbolic importance, since the adjustments made in Maryland’s estate tax bill will bring it into alignment with the federal tax law, which is linked to inflation, and will raise the current wealth exemption to $5.34 million dollars by 2019 - and those inflation adjustments kicking in in 2019 are projected to raise it to $5.9 million (according to a Forbes Magazine article from 3/20/2014). Readers should, at this point, remind themselves by repeating with me: American is not a class based society, we just reward merit. Wage earners have not accumulated enough merit to have their miserly earnings under the minimum wage law, even a rising one, linked to inflation; those who have accumulated enough wealth already to worry about estate tax thresholds have, and if we are not nice to them they will flee our state. Or so goes the conventional wisdom. And, according to some recent studies, Maryland now has the highest density of millionaires per 1,000 of population of any state in the nation.