Democratic chief says taxes, slots ‘split’ party

ANNAPOLIS — The head of Maryland’s Democratic Party says a “major split” has occurred within the party because party members failed to compromise with the Ehrlich administration on taxes and slots.

Democratic Party Chairman Isiah “Ike” Leggett places much of the blame on House Speaker Michael E. Busch, Anne Arundel County Democrat, who insisted upon a $670 million tax increase in the 2004 General Assembly’s waning days.

“My view would have been to put together a comprehensive agreement,” Mr. Leggett said.

Senate President Thomas V. Mike Miller Jr., a Prince George’s County Democrat, agreed yesterday with Mr. Leggett, but called the party a diverse group with a “big tent” philosophy.

“We definitely need an increase in taxes, but not as dramatic as what was proposed by the speaker,” Mr. Miller said.

The proposed sales and income tax increase — the biggest in Maryland history — passed in the House but stalled in the Senate.

Gov. Robert L. Ehrlich Jr., a Republican, promised to veto the tax proposal.

“I just believe [Mr. Busch’s message] was too complex, and the Senate and the governor needed to work [more] on it before pushing it to a vote,” said Mr. Miller, the Democrat in the General Assembly who most supported Mr. Ehrlich’s plan to increase state revenue by putting 15,500 slot machines at racetracks and emporiums.

Mr. Busch refuted the idea that the party has suffered under his leadership and said his tax package was responsible.

“First of all, I think the Democratic Party is larger than what takes place in Annapolis,” said Mr Busch.

He also said Mr. Leggett should rearrange his priorities.

“I think what the good chair of the party should be focusing on is the governor of the state, not bringing a compromise to [increase] revenue,” he said.

Mr. Busch’s plan called for an increase from 5 percent to 6 percent in sales taxes and motor-vehicle titling taxes. The plan also called for increasing the income tax from 4.75 percent to 6 percent on the state’s highest wage earners, to pay for a nearly $1 billion shortfall left by Gov. Parris N. Glendening, a Democrat.

“Somewhere along the line people have to come to the realization that you have to pay for your services,” Mr. Busch said.

Mr. Ehrlich has said slots revenue is the best method for the state to raise $800 million. However, Mr. Busch and the House’s Ways and Means Committee killed the proposal the past two years.

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