Happy Independence Day, Maryland—Here’s Your Newest Tax – MarylandReporter.com

As Individuals ready to rejoice our independence from Nice Britain, the residents of Maryland had been handed a brand new tax invoice  on July 1 at a most precarious time.

Nonetheless recovering from the government-mandated pandemic shutdowns, households are combating hovering inflation and record-high power costs, and the economic system could also be on the point of a recession.

Regardless of this, the state fuel tax rose a whopping 18%, from 36.1 cents per gallon to 42.7 cents per gallon.  The brand new tax propelled Maryland to the fourth highest fuel tax within the nation.  And our legislative leaders did nothing.

Ordinarily, a tax hike will not be so newsworthy—Marylanders are, sadly, used to mindless and endless tax hikes.  From the 20% gross sales tax improve in 2008 to the “rain tax” in 2012 to the brand new digital companies tax of 2021, Maryland’s general tax burden has crept up close to the prime quintile of all states, rating simply behind California and Illinois.

Even worse, Maryland ranks third highest within the nation for particular person revenue tax as a p.c of private revenue.  Because of this, Maryland’s low-income households are struggling, and the rich are fleeing in document numbers.  It’s no shock that the IRS’ newest publication on taxpayer migration confirmed Maryland a serious loser of wealth migration—coming in 44^th place of the fifty states and shedding $1.9 billion in adjusted gross revenue.

However this tax improve is completely different from the sooner ones.  It’s a fuel tax that comes at a time of traditionally excessive fuel costs and when the state has the biggest funds surplus in historical past.  It’s not sufficient for state politicians to have a document $7.5 billion funds surplus from these taxes—no, they need extra.  Quite than view surplus funds because the “folks’s cash” and implementing tax breaks or financial aid, a lot of our legislatures see it as the federal government’s cash, primed for spending on political pet initiatives.  The legislative management blames massive oil firms for exploiting customers and making “record-shattering earnings.” This argument is only a distraction—oil firms make about 7 or 8 cents per gallon of fuel whereas the state now takes 42.7 cents.  Who’s exploiting whom?

The fuel tax is regressive: it is going to hit struggling low- and middle-class households and small- to medium-sized companies the toughest.  Moreover, it’s simply another reason for the rich tax base to flee to Florida or Delaware or the forty different states with a decrease tax burden.  Maryland won’t stay aggressive and appeal to gifted folks and new companies to the state with an more and more heavy tax burden crushing it.

Even Maryland’s Comptroller says the state can afford a four-month fuel tax vacation to supply instant aid with out jeopardizing funding priorities.  What’s the purpose of getting this “wet day fund” if you’ll not use it when it rains?  Implementing a four-month fuel tax vacation looks as if a commonsense resolution to supply the well timed tax break that each one Marylanders desperately want.  Sadly, we’ve got not realized from our previous.

When the Declaration of Independence was drafted, it not solely contained the acquainted traces we’re taught to memorize in class, resembling “We maintain these truths to be self-evident, that each one males are created equal,” however lesser-known, it additionally contained an inventory of grievances the colonies had with Nice Britain that was the impetus for independence.  Of those grievances, deep within the textual content of the Declaration of Independence, it states that King George was a tyrant “For imposing Taxes on us with out our Consent.”  Marylanders fought and died within the Revolutionary Warfare not just for independence however for decrease taxes.

Marylanders won’t combat and die over this fuel tax, not like within the Revolutionary Warfare.  Nonetheless, they may vote.  Will the fuel tax have election implications so near voting day?  The “rain tax” price Lieutenant Governor Anthony Brown the governor’s seat in 2014 to Larry Hogan.

With main elections solely two weeks away and the final election proper across the nook, Marylanders ought to keep in mind who induced the pointless ache on the pump when casting their vote.