We almost made it. We almost got through a General Assembly session without another Martin O’Malley tax increase. But then, at the last moment, O’Malley came out with a new tax that’s larger than any of the other 32 tax hikes he’s put into law during his seven-year tenure.
O’Malley’s bill, as amended by the House Ways and Means Committee, would hike the state’s gas tax from 23.5 cents per gallon to 43.7 cents per gallon by July 2016, an 86 percent increase. It also ties our gas tax to inflation, so it will now automatically increase without any legislative action or blame.
Here’s why O’Malley’s gas tax stinks:
l. Regressive:
Once again Maryland’s “progressive” lawmakers slam the poor. A gas tax hits household budgets, immediately cutting into grocery and medical necessities while penalizing low-income motorists driving old gas guzzlers more than yuppies driving hybrid Priuses.
2. Hurts retailers:
Thanks to O’Malley’s prior tax increases, the cost of tobacco, alcohol and many other items is greater in Maryland than in neighboring states. Now Maryland’s gasoline tax will become the highest in the region and fifth highest in the nation.
Shoppers aren’t stupid, especially during hard times. They’ll compare Maryland’s 43.7 cents of tax on gas to Virginia’s (10.5 cents), Delaware’s (23 cents), Washington, D.C.’s (23.5 cents), Pennsylvania’s (32.3 cents) and West Virginia’s (34.7 cents).
They’re already crossing state lines to buy cigarettes and booze. Now, they’ll fill up their tank, too, and buy their groceries and other household goods while they’re there.
Maryland is a small state within easy reach of its neighbors. O’Malley’s gas tax is going to kill retailers located near the state’s borders.
3. No “lockbox”:
All our gas taxes, vehicle registration and license fees, etc., go into a special fund (the Transportation Trust Fund), not the state’s ge
