Readers respond to last week’s Feedback Friday topic, which was:
Automatic Inflation-Induced Tax Increases
Posted March 24, 2023
Did you know that during periods of national and state economic inflation, Maryland imposes a gas tax increase. This year’s increase—because of the economic hardship we’re all experiencing—could be between 6 and 8 percent at the pump come July.
That’s an increase on what we’re already paying; not a decrease. And yes, it’s tied directly to the economic hardship we’re all experiencing. Talk about rubbing salt in a wound.
Notice that you’ve been paying more at the pump during the past year-plus? It’s not just the cost of crude oil and global economics playing into the price. Inflation reached 40-year highs over the last year and this spike pushed the Maryland excise tax from 36.1 cents to 42.7 cents per gallon starting last July 1st. This July, we’re poised to pay more, again.
The annual tax review (held in April) and increases date back to the legislature voting in 2013 to wed annual increases to inflation. That year was the first in 20 that the legislature voted to increase the gas tax. And the Democratic majority has maintained the status-quo since.
Republicans introduced legislation last year, and again this session, that would decouple the gas tax and inflation rates. But Democrats argue that the increases are necessary to fund the state’s transportation chest (itself a victim of inflation).
What do you think about the State increasing the gas tax during times of economic hardship? What funding solutions can we—constituents—offer our representatives as alternatives to funding the necessary transportation budget?
Here’s what you said:
The increase should be postponed at least until next year. Income had not kept up with inflation.
Jean Radeackar , Annapolis
No new gas taxes!! Please give Maryland citizens a break!
Jean Leidner, Davidsonville
I DISAGREE WITH AND ABHOR ANY AUTOMATIC FINANCIAL TAX INCREASE WITHOUT APPROPRIATE INTELLIGENT HUMAN REVIEW AND DECISION MAKING.HOWEVER, SUBJECT TO THE PRIOR CONSTRAINTS, I WOULD SUPPORT THIS TAX INCREASE IF MD SUBSTANTIALLY SHARES IT WITH ALL MD COUNTIES TO MAINTAIN AND IMPROVE LOCAL STREETS AND ROADS.
Daniel McGrath, Riva
Does anything make sense anymore?
Marianne Drumm , Crofton
Using a car and buying gas is a necessity for most just to do basic things. These need to be kept affordable. There should never be automatic tax increases. That just allows politicians to hide behind them and feeds the government monster that will never be satisfied. Leaders need to educate themselves and listen to valid resources to find all the options. They need to understand money is not the only solution. There are many ways to find efficiencies. Leaders need to cut waste, protect their taxpayers and dare I say it, be wiser?
Debbie Yatsuk, Annapolis
I am absolutely shocked that Maryland legislators have planned a tax increase! Who am I kidding? They love a tax increase. They invented the phrase BOHICA.
And a tax increase that they don't have to vote on? One that they can blame on inflation? Even better!
"What funding solutions can we—constituents—offer our representatives as alternatives to funding the necessary transportation budget?" How about the State be forced to economize, like we are. We are supposedly hiring transportation experts. Let them develop solutions to a budget the has no increase. And I don't believe all transportation spending is "necessary".
But, OK, here's an idea. Competitive bids for all projects at whatever labor rate a company may negotiate. Eliminate the prevailing wage requirement. As most transportation projects receive federal funds, national action would be required.
Also, let's eliminate additional light rail construction. Let's live with what we have. The Purple Line project is horribly mismanaged. Let's not spend $22,000,000 to upgrade restrooms at BWI.And pay attention. The transportation budget is being raided to pay for increased education spending. And there are clear ways to reduce spending there!
Daryl Hodge, Arnold
I need to move to a red state.
Natalie Fe, Millersville
This is bad news for anyone trying to responsibly deal with inflation. We are retired, and although we both worked and contributed for our entire careers and continue to pick up part time employment), we are feeling the pinch that so many retirees living in Maryland face. Property tax on our home we have been in for 35 years, insurance costs (happily with no claims in those years), food, and on and on --we are sadly looking at a move to another state in order to continue to responsibly take care of ourselves.
Susan Murphy, Annapolis
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