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O'Malley Rolls Out Gas Tax, Highlights Tough Choices

Republicans say governor's tax proposals will hurt the working families he wants to help.

 

Gov. Martin O'Malley called for legislators to pass a sales tax on gasoline saying the decision would be unpopular but much needed.

The governor made his comments during his sixth State of the State speech in which he focused on jobs, taxes and what he called tough choices.

"Asking our fellow citizens to do more will not be popular," said O'Malley. "But without anger, fear or meanness, let’s ask one another: how much less education do we think would be good for our children’s future?  How much less education do we want?  How much less public safety?  How many fewer jobs?  There are costs, and there are values."

Republicans in the House and Senate criticized O'Malley for policies they said will hurt the same middle class working families the governor said he wants to help.

O'Malley described the state of Maryland as strong in his nearly 33-minute address to legislators gathered in the House of Delegates chamber Wednesday.

But at the same time he touted the achievements of his administration over the last six years, O'Malley said that more needs to be done.

O'Malley briefly touched on the gas tax—the most anticipated portion of his message. The governor said a bill would be filed in the next couple days.

"With a growing population and aging infrastructure, we might soon pay an even steeper price," said O'Malley. "Bridges are not like trees. They do not grow broader and stronger with age."

O'Malley's plan calls for phased-in elimination of the 6 percent sales tax exemption on gasoline.

At current prices, opponents estimate that the change would add 18 cents per gallon to the 23 cents in state gas taxes.

The additional revenue would create "7,500 new jobs building needed roads, bridges, and public transit" in Maryland, said O'Malley.

"Now look, I know that every family is still feeling the hurt of this recession," said O'Malley. "The people I serve are the people you serve. I know this is a very, very difficult ask.  But nobody else is going to do this for us except for us."

Seeking to increase transportation funding for construction and repair projects that would create jobs, O'Malley intends to submit a bill repealing the sales tax exemption on a gallon of gasoline - phasing it out by 2 percent each year unless the price of gas spikes.

"It's going to be an extremely tough sell," said Senate President Thomas V. Mike Miller Jr., who has advised O'Malley to meet with delegations and various elected officials if he hopes to see the tax increased at all in these difficult times.

Aware that legislators are wary of governors transferring money from the Transportation Trust Fund in order to balance the budget, O'Malley said he would like to safeguard future investments in the fund.

"My understanding is the governor is very receptive to people wanting to protect those funds," said Donald Fry, a former state senator and president and CEO of the Greater Baltimore Committee. "There will be some sort of legally enforceable way to ensure the money in the transportation fund is used for transportation purposes."

Fry is also a member of the Blue Ribbon Commission on Maryland Transportation Funding, which recommended a state constitutional amendment, or "firewall", to keep those funds from being used for other purposes.

Senate Minority Leader E.J. Pipkin said the so-called "lock box" was a gimmick.

"There are all kinds of gimmicks to get at people's money," said Pipkin, an upper Eastern Shore Republican. "The gas tax is one of the most impactful taxes and working families would have already paid."

"On one hand (O'Malley) talks jobs and on the other hand he kills jobs with higher taxes," he said.

Pipkin said most of the transportation money has gone to fund transit projects that only three percent of state residents use.

"Before we have a discussion about raising taxes we should examine how government spends the money," said Pipkin.

During his speech, O'Malley told legislators he has taken a balanced approach to managing the state's finances during the recession including making nearly "$800 million in cuts and spending reductions in the current budget. Including those cuts and reductions, cuts and reductions in state spending total nearly $7.5 billion since O'Malley took office, the governor said.

Critics said those numbers are misleading.

"He's misguiding the public with those words and words mean a lot," said Del. Sue Aumann, a Baltimore County Republican and member of the House Appropriations Committee. "Our budget every year has gone up $1 billion and we have a perpetual deficit of $1 billion."

"The bank of citizens is running dry," Aumann said.

Capital News Service reporters Dave Nyczepir and Mali Krantz contributed to this story.

  • Are you in favor of a gas tax in Maryland?

    (Voting has been closed for this question)
    • Yes.
        8 (20%)
    • No.
        31 (77%)
    • Maybe.
        1 (2%)
    Total votes: 40
  • This is not a scientific poll. View Results Vote!
Related Topics: Martin O'Malley and Maryland governor

JustABill

1:40 am on Thursday, February 2, 2012

Way to go Maryland Democrats! How can you continue to vote for people like Gov. O'Malley, Sen. Miller, Del. Bush, and all the other tax and spend liberals who are so far out of touch with the trials and tribulations of the citizens of Maryland.

If my notes are correct in just the few short days this General Assembly has been in session, Owe'Malley has asked for a 23 cent increase to the current gasoline tax, a 17.33% (1 cent) increase to the state sales tax, and now an expansion of the sales tax overall to include gasoline adding another 7 cents per dollar to the overall price for gasoline. They have not disclosed the other products and services the expansion of the sales tax will cover, but when they tried before it was 43 items including most "services" that have never had sales tax applied to them. Sales tax is supposed to apply to an actual product that is sold not a "fee" for a service provided that does not include an actual product.

So the Democrats who lie through their teeth about how they are the party that will look out for the poor and working class will pass not one, not two, but at least three tax increases or new taxes that will have the most negative impact on the poor and working class citizens of Maryland possible in this horrific economy. Way to put other people's money where your mouth is Gov. Owe'Malley. Then he says the taxes are needed to increase revenues to maintain schools, roads, and bridges.

These are not the droids you're looking for!

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PH

10:23 am on Thursday, February 2, 2012

Right on the money, the same liberals keep getting elected year after year! They know nothing but tax the hell out of the working stiff and could care less. Md. could be $10B
in the black and he would still raise tax's on everything he can. He screwed up Balt. and now he's screwing the rest of the state regardless of how people feel.

JustABill

1:50 am on Thursday, February 2, 2012

This poll like many others on The Patch is very poorly worded. The question should be either "are you in favor of adding a sales tax to gasoline" or "are you in favor of increasing the existing gas tax by 23 cents per gallon and also adding another 25 cents per gallon sales tax thus making the current price of gasoline over $4.00 per gallon?" (25 cents sales tax is based on $3.55/gal average price of regular gasoline and Gov. O'Malley's proposed 17.33% increase in the sales tax making it 7% from the 5% it was for over 30 years before he was elected Governor.)

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Michael B. Cron

12:00 am on Friday, February 3, 2012

I guess the Governor is not worried about running for another term......oh wait; he is already in his second term. Nothing like going out with a bang! I'll bet that some of the people that voted for Gov. O'Malley are wondering, what was I thinking. Where was Ehrlich when we really needed him? This is a sad "state" of affairs. At this (tax) rate, it would almost be cheaper to move to New York!

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Jeff Lemieux

2:33 pm on Friday, February 3, 2012

The current gas tax in MD amounts to about 7 percent. But since gas is exempt from the sales tax of 6 percent, the net tax is about 1 percent. However, the whole 7 percent gets lumped in to the transportation fund (along with revenues from MARC, BWI etc.) for the upkeep (mainly) of roads, while the general fund (education, police etc) loses out on the 6 percent that it would have had if sales tax had applied to gas in the first place.
For a more in depth discussion, with comments, see: http://greatergreaterwashington.org/post/13563/omalleys-sales-tax-on-gas-is-the-right-way-to-fund-transport/

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JustABill

2:19 am on Saturday, February 4, 2012

It is a shame liberals chose to leave out a few simple little things like facts, logic, and the truth when they defend the need for even more taxes in one of the highest taxed states in the union.

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tcmitssr

3:16 pm on Saturday, February 4, 2012

There is little to defend of this Governor's latest attempt to increase his traditional "tax and spend ways," as well as promote his own social agenda items in lieu of his strong desire to secure the Democratic Presidential nomination in 2016.

O'Malley and his supporters are on track to make former Governor Spendening look like a fiscal conservative and Moral Majority leader.

patchman

6:53 am on Saturday, February 4, 2012

If they get this tax bill thru, we , the folks are will pay for ever. Do you really think they will repeal anything when times are better. There's no efficiencies on their spending so far so their mentality is tax baby tax, spend baby spend. I got move! Isn't Maryland ranking as the 7th most taxing state in the nation?

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