This past July, a 50 percent increase in the state’s sales tax
on liquor went into effect. The measure was rammed through by Democrat
legislators and signed by O’Malley, despite opposition from small
business owners and taxpayers. In its first year, it will raise $88
million in revenue on the backs of low- and middle-income Marylanders.
Now, O’Malley is pushing for a $1-per-pack cigarette tax increase.
Lifestyle taxes, because they are generally not value-added — as is the
case with the cigarette tax proposal — disproportionally affect the
poor. O’Malley’s cigarette tax proposal would come on top of President
Obama’s 61-cents-per-pack federal tobacco excise tax, which Obama signed into law in 2009.
In addition to increasing taxes on cigarettes, O’Malley wants to increase Maryland’s gas tax by 15 cents per gallon,
which is expected to raise $491 million in its first year of
implementation. An increase in the gas tax would disproportionately hit
small business owners and working families who have to travel in order
to find employment in Maryland’s weak economy.
You can read the entire article here.
Tax hikes and the impending redistricting plan will be our biggest battles during the coming months.
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