Not unexpected. The General Assembly is debating several bills which would raise taxes.
Our leaders, who have managed our government business irresponsibilly for my entire life, now think that we should give them more money to burn in the fire.
The bill for the proposed gas tax increase is HB1059, which would-
Increasing the motor fuel tax rates for motor fuels other than aviation gasoline or turbine fuel by 10 cents per gallon on July 1, 2011, and by 2 cents per gallon on January 1 and July 1 of each year in 2012 and 2013, and on January 1, 2014.
The current Maryland gas tax is 23.5 cents per gallon, so this proposal is a 42.6% increase in 2011, a 11.9% increase in 2012, a 10.7% increase in 2013, and a 4.8% increase in 2014. According to this data, in 2009, Marylanders consumed 2,875,824,000 gallons of gasoline. That equals $675,818,640 in taxes on gasoline alone. The diesel tax is currently 24.5 cents per gallon. I couldn't find the diesel usage (our government is so efficient that the 2009 diesel data won't be available until later this month-that is March 2011).
For gasoline alone, based on 2009 usage, each 1 cent increase in the tax would yield $28,758,240 to the state. Again, based on 2009 usage for gasoline only, in the first year of the increases, the bill's authors want to take an additional $316,340,640 from citizens to burn in the fire of our government's operations. (That's 6 months of a 10 cent increase and 6 months of a 12 cent increase.)
Do we really get $676 million worth of highway improvements each year from this tax? That's for you (and me) to decide and voice our opinion to our state delegates and senators. For more on how big gas taxes really are, read this post and this post.
On to alcohol.
The bill for the proposed alcohol tax increase is HB1213, which would-
Increasing the State tax rates for alcoholic beverages sold in Maryland from $1.50 to $10.03 per gallon for distilled spirits, from 40 cents to $2.96 per gallon for wine, and from 9 cents to $1.16 per gallon for beer.
This is a 569% increase for distilled spirits, a 640% increase for wine, and a 1189% increase for beer. Not sure how these increases were arrived at. A typical wine bottle is 750ml, meaning the tax on a bottle would increase from approximately 8 cents to $1.18 per bottle, a 12 ounce beer from 0.8 cents to 11 cents.
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During the period from 2002 through 2010, spending on Maryland gvernment rose from $21.4 billion to $32 billion, a 49.4% increase. (I am pretty sure that this is just operating spending, but the table is not clear.) The US Census says that Maryland's population grew 9% from 2000-2010. In the United States the CPI rose 21.3% from 2002 to 2010.
In the past 8 years, if we have 9% more customers, and prices are up 21%, why did our government managers spend 49% more running our business? If they had kept the cost of government at population (customer) growth plus inflation, we would have $4.1 billion more in our pockets to spend or save over the past 8 years.
Let's not give our goverment managers any more of our money until they demonstrate that they can manage the money that they currently collect from us effectively and efficiently.