Gov. Martin O’Malley’s proposal to raise income taxes on 20 percent of Marylanders is triggering a debate about what constitutes “middle class,” as well as a likely flood of counter tax measures.

Several Republicans, meanwhile, are attacking any effort to raise taxes, with House Minority Leader Anthony O’Donnell (R-Dist. 29C) of Lusby charging O’Malley is going after the state’s “thousand-aires.”

Sen. Ed Kasemeyer, who chairs the Senate Budget and Taxation Committee, said a better alternative might be to target filers who earn more than $250,000 or $300,000.

“I think the general feeling is that the $100,000 threshold, in today’s world, is not really a higher income,” he said.

Kasemeyer (D-Dist. 12) of Columbia said he anticipated a number of tax proposals from lawmakers across the state during the 2012 session.

“Is some tax going to be raised ultimately? Yes. To what extent? I don’t know,” he said. “It’s the reality of getting rid of our deficit. It’s going to take a combination of cuts and some revenue.”

Proposals from legislators, who must find some way to close the state’s $1.1 billion structural deficit by fiscal 2014, already are rolling in.

Last week, Sen. Verna Jones-Rodwell (D-Dist. 44) of Baltimore and Sen. Paul G. Pinksy (D-Dist. 22) of University Park introduced a bill to increase income tax rates for Marylanders who make more than $1 million per year.

The proposal is similar to a millionaire’s tax that raised $120.5 million for the state from 2008 to 2010, when the rate expired.

The number of filers who had net taxable incomes greater than $1 million fell from 2007 to 2008 and again in 2009, but the number of filers in lower tax brackets increased during those years, according to data from the Comptroller of Maryland’s Office.

In 2010, the number of millionaires rose to 5,282, said Christine Duray Feldmann, a spokeswoman for the comptroller’s office.

Sen. Roger Manno (D-Dist. 19) of Silver Spring, who said families earning $150,000 in Montgomery County are “probably not high income,” introduced a bill that would raise county tax rates through what he calls “the piggy-back inflater.”

Del. Heather Mizeur (D-Dist. 20) of Takoma Park is floating a plan to allow all state residents to vote on whether to increase local taxes by 1 cent, and then see the additional tax dollars at work in their own communities.

The governor’s proposal would increase state general fund revenue by $182 million by phasing out exemptions for individuals earning more than $100,000 in state taxable income and families making more than $150,000. The plan also caps deductions for expenses such as mortgage interest and charitable donations for all filers making more than $100,000.

The change would cause two in 10 filers, or 428,347 Marylanders, to pay a higher tax bill in 2013.

If competing proposals to raise the income levels targeted by the reforms go through, the revenue could decrease significantly. The number of filers with incomes at or higher than $250,000 was 48,734 in 2010, according to data from the comptroller’s office.

The measures, starting with O’Malley’s proposal, are refueling talk of the middle class and what is happening to it, a theme that has gained national traction since President Barack Obama’s State of the Union address.

“If you make under $250,000 a year, like 98 percent of American families, your taxes shouldn’t go up,” Obama said. “You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief.”

Other definitions of “middle class” in America — and by politicians in Annapolis — can vary widely.

Doug Hall, director of the Economic Analysis and Research Network at D.C.-based Economic Policy Institute, described defining the middle class as “one of those ‘Beauty is in the eye of the beholder’ kind of things.”

He considers the middle fifth of income earners — those with incomes just above and just below the median income — the middle class, Hall said.

The median income for all Maryland households in 2010 was $68,854, according to the U.S. Census Bureau.

The president’s Middle Class Task Force concluded middle-class families are defined more by their aspirations — to own a home, cars, afford college — than their incomes.

Hall said middle class families face the greatest strain from increased cost for college, medical care and everyday expenses such as gasoline.

Republicans immediately attacked O’Malley’s proposal, saying it is “precariously balanced on the backs of Maryland’s small businesses and middle class” and redefines wealth in the state.

“It feels like kicking the middle class when they’re down,” O’Donnell said. “People in the middle class that I talk to are struggling to pay their bills, put food on their tables. A better alternative would be to reduce spending.”

Neil Bergsman, director of the Maryland Budget and Tax Policy Institute, disagreed, calling the overall budget proposal fair, because it’s based on taxpayers’ ability to pay.

“This is about the most balanced and moderate proposal we’ve seen for helping to fix the deficit in the last five years,” he said.

“It’s important to have an approach to balancing the budget that includes some revenues because we have to keep our investments in education and quality of life. That’s Maryland’s edge.”

Raquel Guillory, O’Malley’s spokeswoman, said Thursday the governor is not backing off the proposal, but is willing to discuss changes with lawmakers. The state needs to close the buget gap and create jobs, Guillory said. “This is our proposal for getting there.”

As written, O’Malley’s income tax proposal also would create slightly less than $111 million for Maryland's 23 counties and Baltimore City.

Manno shrugged off the notion his proposal to raise the so-called piggy-back tax, which is added on top of state taxes to benefit county governments, would create an additional burden for taxpayers in a down economy.

“I kind of look at it the other way,” he said. “We need to provide the county with some revenue authority so they’re not forced to make cuts to other programs and public employees.”

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