Maryland Senate passes spending plan that would raise taxes for first time since 2007 But what form the tax package would have to take to clear both chambers of the General Assembly only began to come into focus with Thursday's vote. Senate Democrats, who initially rebuffed a proposal by Gov. Martin O'Malley (D) that would target tax increases on those making more than $100,000, were forced to change course to win over the most liberal members of their caucus. The Senate plan for an across-the-board income tax increase was amended in the final hours before a series of votes late Wednesday and early Thursday to include a more aggressive method for counting taxes paid by those making more than $500,000. The proposal elicited charges of class warfare from Republicans, and even prompted nearly a quarter of the chamber's Democrats - mostly those from moderate districts - to break ranks and vote against the plan. "You may dislike and despise millionaires," said Sen. Richard F. Colburn (R-Dorchester) in the direction of Democratic lawmakers on floor of the Senate. But here in the People's Republic of Maryland, we are recovering from a recession, [and yet] we want to increase taxes. Colburn's comments followed a series of remarks from Republicans equating Maryland Democrats with socialists and communists, a rare instance in which the bitter tone of presidential election-year politics permeated the normally genteel state Senate. Not at all," Sen. Paul G. Pinsky (D-Prince George's), shot back during another exchange. It's tax fairness. It's justice. Under the $35.9 billion budget, which passed 26 to 20, most Marylanders would pay a quarter-percentage point more in income taxes, which would translate into an additional $65 to $200 annually for most residents. Budget analysts said the plan would raise more than $440 million in additional tax revenue in the budget year beginning in July - accounting for the lion's share of $572 million in permanent fixes to close the state's shortfall. Marylanders making more than a half-million dollars would also pay a new flat tax. Unlike the state's current graduated income tax - in which the higher rate would have applied only to earnings above $300,000 - a new top rate of 5.75 percent would apply to every dollar earned for those making over a half-million dollars. With county income taxes, the combined state-local rate for those Marylanders would rise to 8.95 percent. The difference between those making $500,000 and $500,001 would be stark, analysts said, with those a dollar above the cutoff paying thousands of dollars more annually.