Issue Position: Gas Tax

Issue Position

By: Sid Saab
By: Sid Saab
Date: Jan. 1, 2014

Governor O'Malley increased the gas tax 4 cents this year from 23.5 cents to 27 cents per gallon in the first of several periodic increases scheduled to be phased incrementally by 2016. Diesel and biodiesel fuel tax increased from 24.75 cents to 27.75 cents per gallon. The overall tax will almost double increase to 45.5 cents per gallon when fully implemented.

Lawmakers also made a shameless move to attach the tax to the systemic increased rate of inflation of the Consumer Price Index (CPI). This tax will not be reduced if the CPI ever decreases or stays steady. Previously, the gas tax was based on a fixed flat gasoline tax. This means that all future gas tax increases will occur automatically when the rate of CPI goes up. This dishonestly detaches politicians from the deed of their past to pass robotically recurring tax increases. This unfairly disenfranchises voters from having any input to any future rate increases and their final say on the subject.

To make matters worse, the U. S. Congress is debating over the "Marketplace Fairness Act" that will authorize states to tax Internet sales. If this law passes, then Maryland motorists will only see an increase of up to 3% as expectations of new revenues from an Internet Tax will offset any need for an additional increase in the Gas Tax. However, if the law doesn't pass, then Maryland may see the gas tax increase up to 5%.

The Governor made a bold announcement that the monies raised from this burdening tax will bring in $800 million that will exclusively go toward the formation of a "new" Transportation Fund and will have the potential to create as many as 27,000 new jobs.

While we need funds to repair roads and bridges throughout the state, I question the formation of a "new" Transportation Fund. The old Transportation Fund worked for decades very well until the current Governor and the Democratically controlled General Assembly purged millions of dollars out of the old Transportation Fund to pay for special projects not allocated in past budgets.

So if the Governor and Legislature promise not to touch this "new and improved" Transportation Fund (as they say they will do in the future), what is to stop them ignoring their promise in the future and raid the "new" fund? What assurances do we as hard-working taxpayers have that they will keep their word this time and in future administrations?

The problem is we don't have any assurances.

That is why if you elect me as your representative I will:
Put forward a bill that makes any attempt by future administrations and legislatures to plunder the Transportation Fund coffers a state crime that is punishable by a heavy fine and/or jail sentence.
Build a coalition of like-minded legislators to authorize a complete audit of the Transportation Fund and all other projects that past Transportation Funds were directed.
Present an amendment to the new Gas Tax law that repeals the portion that connects all future gas tax increases scheduled to rise with the CPI.
Equally designate all funding throughout the entire state and based solely on tremendous need rather than a few projects allotted in mostly urban areas.
Find waste in other programs and redirect those funds to the "new" Transportation Fund to allow the gas tax to decrease during hard economic times as we are now experiencing.


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