A coalition of progressive organizations, labor and teachers unions have been holding meetings around the state to gather support for their call to raise taxes to save services to vulnerable groups that have shrunk with the state budget.

Seventeen organizations, allied as Save Our State, are calling for changes to Maryland law that would close a loophole that lets companies operating in other states avoid paying Maryland taxes on what they make within the state.

The groups also want lawmakers to restore the higher 6.25 percent income tax rate for Marylanders who make more than $1 million in a year.

“We’re talking about keeping basic services, so we don’t fall down into an even worse predicament,” said Elbridge James, president of Progressive Maryland, one of the organizations in the coalition.

James said the frustration of those who get and give services was “staggering,” as heard at meetings around the state.

“We’re going around the state to find out about the need,” said James, who said attendance has ranged from dozens to hundreds.

Senate Budget and Taxation Committee Chairman Edward J. Kasemeyer said he does not expect proposals to close corporate tax loopholes and to reinstate the higher tax rate on incomes above $1 million to gain more traction this year than last, when they died in committees.

But lawmakers cannot meet their commitment to cover a $1 billion budget gap within two years without taking action to create new revenue this year, said Kasemeyer (D-Dist. 12) of Columbia.

Kasemeyer said he believes the Senate, which gets the budget bill first this session, “will try to accomplish” an increase in the gas tax, but that a successful effort will make it tough to muster support for other tax increases.

The next meeting is scheduled for 6 p.m. Thursday at Thomas Farm Community Center in Rockville.

The group also is calling for supporters to assemble at 10 a.m. Jan. 11 in the House office building in Annapolis — the first day of the General Assembly session.

On its website, Save Our State points to the left-leaning Maryland Budget and Tax Policy Institute’s State of Working Maryland 2011 report, released last month, as evidence of the need.

The study says that, while Maryland’s median household income is still the highest in the nation, middle- and working-class households’ income has not risen as fast as the cost-of-living in the state.

The report cites figures to show that housing is increasingly unaffordable in Maryland for most families, that college tuition is growing out of reach for more Marylanders and that, despite the state’s relatively low (7.4 percent) unemployment rate, there are three out-of-work Marylanders for each available job.

“They are really hitting the right notes, no doubt about it,” said Justin Ross (D-Dist. 22) of Hyattsville, who sponsored legislation to close corporate tax loopholes for the past several years and said he will again in 2012.

“The problem isn’t with Republicans, it’s with Democrats that put the needs of the business community ahead of working people,” Ross said.

Business would have to make some adjustments, Ross said.

“Ask me who should shoulder more of that burden -- I’m saying the biggest corporations in the state, not small businesses and working families,” Ross said.

The Save Our State coalition also points to extending the sales tax to apply to more services and Internet sales as recommended “solutions.”

Gov. Martin O’Malley sent a letter to Maryland’s congressional delegation on Dec. 21 asking them to support federal legislation to allow the state to collect sales tax on items bought online and from companies outside Maryland.

mhyslop@gazette.net