NONE OF O'MALLEY'S TAX POLICY IS DEMOCRATIC----A DEMOCRAT WOULD NEVER USE TAXES LIKE THIS----IT IS NOT EVEN REPUBLICAN----IT IS SIMPLY A POL SENDING AS MUCH WEALTH TO THE TOP AS POSSIBLE.
Maryland is tops in wealth inequity in the nation because of two main factors-----massive fraud and government corruption move all wealth to the top and the tax policy allows corporations and the rich to pay nothing while the working and middle-class get taxed, feed, and fined to death. The tax policy is not so much in law------Maryland simply does not enforce tax law and allows lots of corporate and rich tax evasion. Well, now they want to place this dynamic in law by calling it 'business-friendly'. They have another motive-----Trans Pacific Trade Pact seeks to allow global corporations to operate in the US as they do in the developed world and the developing world of course does not tax corporations and the rich. America has always taxed everyone equally and corporations have always had their taxes so this move to tax repression and not progression does not meet this Constitutional rule of equal burden of taxation.
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.
We are not allowed to place a tax on only one corporate industry just as we cannot tax only people owning pit bulls. Uniformity extends to people of all stripes paying to support the country. This does not mean flat tax---progressive taxation ties taxation to income EQUITY----it means that the rich and corporations will pay taxes to support the nation just as everyone else. Where neo-cons and neo-liberals are taking the US is having corporations and the rich not only paying no taxes but getting the taxes we pay as corporate subsidy to profits.
THIS DOES NOT MEET CONSTITUTIONAL REQUIREMENTS.
GLOBAL CORPORATE POLS SAY 'WHAT CONSTITUTION'! WE ARE WORKING WITH THE TRANS PACIFIC TRADE PACT GLOBAL CORPORATE TRIBUNAL CONSTITUTION.
Below you see what O'Malley did for corporate profit-----he leveraged the bond debt in Maryland so high and tied it to property tax so that decades into the future the average Maryland citizen would foot the bill for ever rising property taxes to meet these bond payments. Remember, the goal is to move all real estate to a few----that is what the subprime mortgage fraud was about and now this policy will supposedly 'force' the state to use property taxes to fund what will be an increasingly rising bond debt. I will return to this bond debt goal ----for now we need to know this was done deliberately by O'Malley and Maryland Assembly and it was done strictly for corporate profit and control of real estate.
Posted at 7:17 PM ET, 01/28/2011
Maryland may need 56-percent property tax hike to cover state debt, report says
By Aaron C. Davis Washington Post
Maryland lawmakers will either have to raise property taxes by 56 percent over the next five years, or take away $1.1 billion from classrooms, police, and other core state services to cover record state borrowing, budget analysts said Friday.
The dire predictions come from a combination of bills coming due on Maryland's long-term debt, plus falling property tax revenues, which have traditionally covered the costs.
The approach Gov. Martin O'Malley (D) took to blunt years of recessionary budget problems is partly responsible, according to a report released Friday afternoon by the state's nonpartisan budget analysts.
In the last three years, O'Malley has accelerated a decade-long practice in Annapolis of shifting expenses once paid entirely with cash to the state's capital budget, which is funded with bond money repaid with interest over 15 years.
The approach allowed Maryland to increase spending on school construction, as well as to continue robust funding for Chesapeake Bay restoration, open-space and other environmental programs during the worst years of the downturn. But it will come at a cost, the report said.
Over the next five years, principal and interest payments on state debt will rise from $835 million annually to over $1.1 billion in 2016.
During the same time, state property taxes and other revenues set aside for debt are expected to shrink, from $954 million to $715 million annually, according to the report.
Save tax increases, the budget lawmakers are now preparing will be last in years in which existing property tax rates and other special revenues would cover Maryland's annual debt costs, the report said.
Beginning in 2013, $132 million from the state's general fund will be needed to cover the debt payments. The yearly cost would rise to $398 million by 2016.
Those costs would eat away at Maryland's $13-billion general fund, which pays for education, Medicaid, public safety and other costs, and is already projected to suffer from major shortfalls for most of the rest of the decade.
The report by the Department of Legislative Services said that to keep the state's operating budget whole, Maryland's current property tax rate of 11.2 cents would need to increase annually, to 17.5 cents by 2016. The rate is set on $100 of assessable base.
Maryland's increasing debt costs raise the specter that O'Malley, who in last fall's election railed against his predecessor, former Gov. Robert L. Ehrlich Jr. (R) for supporting a previous property tax increase, could be forced to make a similar move.
O'Malley spokesman Shaun Adamec said in an e-mail that he doubted the governor would go in that direction.
"Funds are allocated each year to keep the property tax rate where it is and I don't suspect we would discontinue doing so going forward."
O'Malley this year has already proposed reducing the overall size of the state's capital budget to $925 million from $1.1 billion after a commission said Maryland was too close to its state's debt limit of 8 percent of revenues.
By Aaron C. Davis | January 28, 2011; 7:17 PM ET
Remember, the billion dollar school building deal was only done this way to have all the schools tied to this debt default into the hands of the investors----stakeholders. O'Malley and Wall Street worked these extreme bond leveraging deals in a way that allowed Moody's and S & P state rating agencies to pretend Maryland still has a AAA bond rating. This is the same Moody's that gave us the massive subprime mortgage fraud by pretending these loans were good.
THE ENTIRE O'MALLEY SCHEME OF EXTREME BOND DEBT IS ILLEGAL AND IT IS PUBLIC MALFEASANCE IN A GRAND SCALE AND MARYLAND ASSEMBLY VOTED FOR IT----AS DID BALTIMORE CITY HALL IN SOME CASES.
We are talking fraud big time folks. The Maryland Assembly deliberately placed the citizens of Maryland in harms way knowing the coming bond market crash and the FED's backing away from yet another criminal act-----manipulation of the interest rates and inflation-----is ready to implode. It is illegal because the FED knew these actions would blow up the economy and the FED's mission is to create economic stability.
THIS IS ALL ILLEGAL.
The FED's solo act------remember, Rule of Law demanded that the Wall Street banks be downsized by recovery of tens of trillions of dollars in financial industry fraud. That was the solution and it would not have destroyed the economy -----the US would be on the road to recovery and not ready to crash in the deepest crash in history if Obama, Congress, and the FED not been working to enrich those at the top and empire-building. The FED has no choice but to end its manipulations----it is $4 trillion in debt with a national debt reaching $21 trillion.
IT IS MAXED OUT AND INTEREST RATES AND INFLATION WILL RETURN TO NORMAL AND THEN RISE FAR MORE.
As the article below says the rest of the world is ignoring the FED's criminal policies assuring 'A MAJOR CORRECTION IN THE ECONOMY' which is THUG-SPEAK for a major economic crash.
How does all of this have anything to do with property taxes? Bond deals are tied to interest rates-----when the FEDS allows interest rates to rise----so to will the interest rates on these bonds. The cost to the citizens of Maryland will be huge and all that cost is tied to Maryland citizens and their property taxes. BUT THESE BONDS ARE TIED TO THE LOW INTEREST RATE you say=====remember LIBOR? This bank fraud that stole trillions of dollars using interest rates that has never been recovered hitting Baltimore hardest because O'Malley was Mayor and through Baltimore citizens under the bus just as he is doing now to Maryland citizens. The Maryland Assembly voted for all this so this is YOUR POL THAT VOTED FOR THIS......Baltimore had so many BOND issues last election to supersize this effect on Baltimore citizens.
THEY REALLY WANT YOUR REAL ESTATE!
This is boring but I will get less technical soon---please scan to see the US is alone in its economic policies and none of it has anything to do with what needed to happen because of the 2008 crash. Look who is advising Yellen for goodness sake!
Center for Financial Economics at Johns Hopkins University in Baltimore and a former adviser to Fed chair Janet Yellen.
Fed's solo act gets tougher with ECB, others in stimulus mode
By Howard Schneider and Michael Flaherty
WASHINGTON Fri Jan 23, 2015 10:01am GMT
U.S. Federal Reserve Board Chair Janet Yellen (L) and Treasury Secretary Jack Lew (R) participate in Financial Stability Oversight Council open meeting at the Treasury Department in Washington January 21, 2015.
Credit: Reuters/Jonathan Ernst
(Reuters) - Federal Reserve policymakers, already struggling to assure investors that they remain on track for a mid-year interest rate rise, will find the task has just become harder with their peers in Europe and elsewhere headed in the opposite direction.
The swelling ranks of central banks cutting rates and ramping up stimulus make it more difficult and riskier for the Fed to proceed with plans to end crisis-era policies, according to Fed analysts and former staffers.
It is not unusual for central banks to be out of synch at times, but the deepening divide between the Fed and much of the rest of the world is unprecedented, heightening the risks and uncertainty surrounding the Fed's plans, economists say.
The European Central Bank's decision on Thursday to pump 60 billion euros ($68.17 billion) a month into the faltering euro zone economy just deepened the divide. The stimulus rivals the size of the quantitative easing program the Fed ended only three months ago in a sign of confidence about U.S. economic recovery.
The euro fell below $1.14 after the ECB announcement, its lowest level since July 2003, while interest rates on long term U.S. bonds continued their recent nosedive.
“The foreign outlook...has darkened. And that will make this decision - lift off, the path of interest rates thereafter, how you communicate it – harder,” said Jon Faust, director of the Center for Financial Economics at Johns Hopkins University in Baltimore and a former adviser to Fed chair Janet Yellen.
“It will be doubly important for the (Fed’s policy setting committee) to communicate how it is thinking about risks flowing from abroad, because we are facing a truly unique constellation of circumstances.”
The Federal Open Market Committee meets next week, and is expected to repeat that those risks from abroad have yet to throw the U.S. recovery or their rate plans off track. U.S. central bankers have been adamant on that point over the past several months despite tumbling oil prices, ebbing global growth, and market expectations that the Fed will eventually capitulate and delay its first rate increase since 2006.
U.S. policymakers have insisted that as long as the economy continues generating jobs, growth will remain on track and inflation eventually would begin to rise towards the Fed's two percent target.
PULLING THE OTHER WAY
But next week will test whether, in fact, they are willing to swim against the current in conditions that get tougher by the week, and also if they can make their case convincingly.
The ECB is not the only one pulling in the other direction.
The Bank of Japan and a host of important secondary players - Canada, India, Turkey, China, Denmark, and Switzerland among them - have cut interest rates recently, often surprising markets and showing how unpredictable conditions have become.
The steps those banks are taking will make the mechanics of raising U.S. rates more challenging: lower rates and massive new liquidity overseas will lure investors to U.S. assets as the higher-yielding safe haven of choice, pushing down the very rates the Fed will try to increase, and driving up the value of the dollar.
They could also hurt U.S. jobs and growth, the indicators the Fed arguably cares most about. Fed officials have downplayed the dollar's strength, noting that the United States is less reliant on trade than other developed nations, and able to count more on domestic demand.
Yet the impact could be significant.
Bank of Canada's surprise rate cut on Wednesday knocked down the Canadian dollar against the U.S. currency below 81 cents, adding to a drop of 15 percent since mid-2014. Canada is the United State's largest trading partner. It also shares supply chains in the auto and other industries that allow jobs and investment to shift to the cheapest source.
Other countries may follow along soon, driving up the value of the dollar further and making U.S. goods more expensive.
"The pressure on other commodity-dependent central banks to follow suit will likely rise in the coming months as they wipe the dust off their competitive devaluation playbook," said TD Securities analyst Millan Mulraine.
OPENING THE FLOODGATES?
The Fed will also now have to contend with a potential flood of money from investors looking to the United States as the global economy's sole bright spot.
U.S. bond rates have been falling in recent months. Hundreds of billions of dollars that will be created by the ECB and potentially other banks in coming months may be headed this way, meaning even more downward pressure on market rates and dollar strengthening that the Fed will have to deal with when it decides to hike.
There are other risks as well.
If Europe, Japan, China and other economies fail to respond to more stimulus, it would reinforce the notion that the world has moved into a permanently lower gear, so called "secular stagnation" - a bad omen for U.S. wages and growth.
The World Bank also warned last week that developing countries "may be tested" in coming months if investors decide to shift from emerging market stocks, bonds and businesses into U.S. assets.
In the tidal struggle that is developing over the direction of global interest rates, investors last year already pulled a quarter of a trillion dollars out of emerging markets, according to a recent report by the Institute of International Finance. Cross-border investment is expected to fall again in 2015 as a Fed policy shift approaches, according to the IIF.
"We have not lived through a period of such wide monetary policy divergence...We don't have a good roadmap for how this plays out," said IIF chief economist Charles Collyns.
If Fed tightening proceeds, it could lead to market turmoil, potentially undermining global growth and, in the extreme, the U.S. recovery. "The markets could wake up one day and make a substantial and abrupt move and it could have quite a negative impact."
LIBOR was a scheme that pretended to give municipalities good deals on interest rates and then banks simply committed fraud instead. This is what will happen to these credit bond leverage deals. All Maryland pols know this----they knew the subprime mortgage scheme was filled with fraud and used to move real estate into the hands of a few in Baltimore ------this bond deal scam does the same. Think of all the real estate tied to this bond scam through the Maryland law tying property tax to these bonds deals. When the bond market collapses the FED will have no ability to manipulate and interest rates and inflation will grow higher than ever. Maryland property taxes will rise along with this. That is what the first article addressed.
As I stated---the Maryland Assembly did all this knowing what was coming so is Larry Hogan really going to reverse all of this? Hogan does not want to----he supports moving real estate to a few. He will hem and haw about State Center or a few things-----but the point is
THIS IS ALL ILLLEGAL AND CAN BE REVERSED BY ANYONE BY SIMPLY TAKING IT TO COURT AS FRAUD AND MALFEASANCE AGAINST THE CITIZENS OF MARYLAND.
Hogan will say it is those Clinton neo-liberals who won't let me reverse this terrible policy, but he has the power to go to court and I know he will not. Baltimore was allowed to be ground zero because they think we have no power for justice. We need citizens of Maryland and especially Baltimore heading for the courts as we simply need to document this malfeasance for when we reinstate Rule of Law. Remember, this is a state-wide bond deal and everyone will be effected-----there are projects that never needed to be funded by these bond deals in your neck of the woods. Maryland has plenty of revenue for all of its public works-----it is simply being stolen.
More on Municipal Malfeasance
Posted by Larry Doyle on August 15, 2012 7:01 AM |
We should never discount the lengths to which some will go to fund a supposed immediate need via an exorbitant future expense. I highlighted specifics of just such a reality a few days back in writing Joel Thurtell Shames Poway, CA Financing.
What do others think of the financing Poway and other municipalities have undertaken? Not much. Bloomberg highlights further details of this horrendous situation in writing, California Schools Barring Taxes Push Bills to 2051,
California school districts are financing projects by pushing debt payments as far as 40 years into the future, defying a warning from the Los Angeles County treasurer while incurring interest that dwarfs principal by 10- to-1 or more.
Last year, 55 school districts were among local authorities selling bonds that mature in more than 25 years, the most since 2007, according to data compiled by Bloomberg. The practice is akin to state and local governments raising pension benefits without funding them, said John Hallacy, head of municipal research at Bank of America Merrill Lynch. Increased retirement costs helped push Stockton and San Bernardino into bankruptcy court this year.
“It’s not so much kicking the can down the road as it is burying a drum of toxic waste in the back of the school,” said Jonathan Fiebach, a partner at Grant Williams LP, a Philadelphia investment advisory firm.
The practice persists in California, Illinois and other states, even though Michigan outlawed the bonds in 1994 and Los Angeles County Treasurer Mark Saladino last year counseled California school officials against issuing them.
San Diego County Treasurer Dan McAllister said many districts are struggling to come up with funding for much-needed expansion and modernization projects, causing them to turn to nontraditional instruments. McAllister has approved the longer- term bonds even though debt service on some “is a pretty outrageous proposition,” he said.
The Poway and Santee bond sales were managed by Stone & Youngberg LLC, which was acquired last year by St. Louis-based Stifel Financial Corp. (SF) Stifel’s media-relations department didn’t return phone messages left last week and yesterday.
Three of the 11 districts with capital-appreciation bonds maturing in 2051, including Poway, were advised by Dolinka Group LLC, a consultancy in Irvine, California, that has worked for more than 250 school districts, community college districts and county offices of education, according to its website.
The municipal market has traditionally had very low rates of default. Those days are gone. With more municipalities financially strapped, they have clearly forsaken any semblance of prudent financial management. One reader had expressed keen insight on these municipal financings,
Is not there some standard of “reasonableness” that should be in place here, such as a reasonable expectation that the loan can be paid back without “pie in the sky” projections for property values in place (e.g., CalPers anticipated returns for the State of California’s, now unfunded pension liabilities).
I know that after the meltdown there was much talk about the concept of reasonableness in mortgage lending. This seems pretty egregious and another example of so many people being asleep at the wheel.
Another reader also had two words of wisdom for investors.
The article below has been removed----notice they are selling these bonds as 'high quality'?
With “High Quality” Moody’s, S&P Ratings, City Schools ... vtma.baltimorecityschools.org/News/PDF/BondRating.pdfPRESS RELEASE For Immediate Release: Friday, November 20, 2009 With “High Quality” Moody’s, S&P Ratings, City Schools Issues $51 Million in School Construction ...
All the pols in this adventure as with all of the non-profit directors bringing people out to support these deals all know the goal and the coming economic collapse. I am no rocket scientist-----I simply read the national news journals. All of these deals are now tied to your property tax and likely most of these projects will default and be handed to private investors.
These are city specific bonds so are not supported by the state-----the billion dollar school bond does tie the state to some of the debt.
7 bond issues you'll see on the Baltimore City ballot
Tuesday Nov 3, 2014, 1:47pm EST
The National Aquarium is one of several Baltimore City institutions that could receive funding as a result of bond issues on the Nov. 4 ballot.
Sarah MeehanReporter- Baltimore Business Journal
As much as $130 million in funding for Baltimore City schools, parks and museums is on the line in Tuesday's election.
Along with electing Maryland's next governor, city voters will have the chance to approve or reject seven motions that would allow Mayor Stephanie Rawlings-Blake and the Baltimore City Council to borrow money for a range of projects.
Public schools, the Enoch Pratt Library, the Baltimore Museum of Art and the National Aquarium are among the institutions that stand to receive the funds.
Here's an overview of the bond issues you'll find on the Baltimore City ballot on Election Day:
- Question A: School loan
- Question B: Recreation and parks and public facilities loan
- Question C: Community and economic development loan
- Question D: Baltimore Museum of Art loan
- Question E: Walters Art Museum loan
How does a city right on the edge of bankruptcy get all of these bond deals? It allows Wall Street to create fraudulent financial instruments that hide debt in order to make it seem as all these deals are not public malfeasance. THEY ARE PUBLIC MALFEASANCE.
The deals are tied to property taxes for one and the goal is default so Wall Street loves when deals are made for default.
No one wants your real estate more than Baltimore Development and Johns Hopkins. We have Baltimore City Hall creating fake water and tax bills serving them to homeowners in city central just to make these homeowners default on payment. Then, laws that allow the city to sell tax and water debt to private investors move these homes from city homeowners to investors. If you do not believe conspiracy goes this deep----you do not know Baltimore politics. The same will happen with this bond debt tied to property taxes. These taxes will rise in areas they want to claim as selective taxation is the city grows.
This article is the only one that actually educated the citizens of Baltimore as to the real situation with bond issues in Baltimore. The media was silent as were all of the non-profits that should be trying to protect the citizens of Baltimore from this ongoing fraud.
Why I'm Opposing 15 of Baltimore’s 16 Proposed Bond Issues
by Lynda Lambert Baltimore Chronical
I voted for the library loan about 10 years ago or so, expecting renovation of the neighborhood libraries. What did we get? They closed five neighborhood libraries. There is little question that every single one of us leaves, until the last minute, our decisions on bond issues. They get little publicity; we have no public discussion. We often simply allow ourselves to be guided by who the bond is for. Oh, it’s for the libraries, vote ‘yes,’ of course. The schools? Yes. The museums? Yes. NO!
If you think that way, you’ll get stung. I’ve learned over the years: it’s in the wording.
Every bond issue begins by saying that they are asking us to “authorize the Mayor and the City Council of Baltimore to borrow [a certain dollar amount] to be used for the acquisition of land or property to” do something. Every bond issue ends with these words: “...and for doing all things necessary, proper or expedient in connection therewith.”
In other words, give us the money to do with as we like.
Consider, as an example, question B, which is asking for $43 million for the public schools.
We had plenty of good school buildings. Many of them were fully occupied, like Eastern High School. Rather than pay $3 million to fix the heating system, they closed that school, and many like it. Now they want $43 million to build new ones. And where are they going to build them? Whose block will get torn down to do that? Your house? My house?
They often say, “Oh, no, we’re going to renovate.” But that just isn’t true. How many of us have spent weekends painting our schools and fixing windows and cleaning up? They never fix up the schools. They let them fall into disrepair, then close them, then ask us for more money to build new ones.
A great many bond issues are meant to lead us to believe they’re talking about renovation, when, in fact, they’re talking about demolition or destruction of other kinds.
Many years ago, there was a bond issue to “renovate” the Lyric Theatre—and, in fact, question H in this election is asking for another $1 million for The Lyric. Well, in the prior bond issue, everyone was talking about how The Lyric had never been finished; how the original builders had not had the money to put on the fancy facade they’d wanted and that the money would be used for that. So, I voted “yes.” You can see plainly what they did. That is no archaic facade; they put on the front of that venerable theatre what I consider to be a modern monstrosity that's completely at odds with the original builders’ plans. And what will this million be used for? Buy up the block of buildings across the street and build a parking lot? Who knows? They never say specifically.
I voted for the library loan about 10 years ago or so, expecting renovation of the neighborhood libraries. What did we get? They closed five neighborhood libraries, tore down some historic buildings in East Baltimore, and built the “regional” library. There was a big fight about it, after we all figured out what they were trying to do. We saved two libraries, which did get renovated, but it took years. No one wanted or needed a regional library, but we’ve got one.
And then there are some loans which simply don’t make sense. For instance, the Baltimore Zoo, which is no longer the Baltimore Zoo. It was renamed The Maryland Zoo, because the citizens of Maryland were going to be paying for it. So...why are Baltimoreans being asked to pony up $300,000? You can’t tell from the description of the issue, that’s for sure.
And some of these bond issues are to help private nonprofits. People are losing their homes right and left to foreclosure, and they want us to secure loans for Port Discovery and Everyman Theatre, The Meyerhoff, and the aforementioned Lyric. What gives?
Bottom line: I will be voting “no” on all 16 bond issues, save for “F,” which is for public parks. I don’t figure they will be tearing down blocks of houses to put up public parks. Of course, I could be wrong. You can never tell, because they don’t really want you to know.
I would like, just once, for us to defeat all bond issues and force them to tell us really, truly, honestly, what they want the money for. I would like, just once, for us to defeat all bond issues and force them to tell us really, truly, honestly, what they want the money for. This standard wording, which gives them carte blanche with $215.2 million of our money this year alone, is simply insufferable.
Lynda Lambert, a college instructor, writes from the Hampden community in Baltimore City.