Chamber Seeks More Detail on Gas Tax PIan
The head of the West Anne Arundel Chamber of Commerce said she would like to hear more about Gov. Martin O'Malley's plan to add sales tax to the price of gasoline.
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The head of the local chamber of commerce expressed mixed feelings toward Gov. Martin O’Malley’s proposal to add a sales tax to the cost of gasoline, but said she would reserve full judgment until he presents a bill to the legislature.
Claire Louder, the President and CEO of the West Anne Arundel County Chamber of Commerce in Odenton, said she was pleased to see the governor consider raising new money for transportation, but wanted to see specific details on how it could be used.
A broad coalition of business groups, including the chamber, has endorsed a 15-cent increase on the gas tax to help raise more than $800 million for transportation improvements in the state. It has been a particularly hot local issue due to the recent expansion of Fort Meade.
O’Malley’s plan, announced Monday, calls for a 6 percent gas tax on top of the existing 23.5 cent flat tax. At current prices, the price of gas would rise by about 20 cents.
“There’s definitely a need for an investment,” Louder said. “But 15 cents was already a lot and now we’re talking about more than that. It just may be more than people can stomach.”
But, she said that even an additional 20 cents per gallon of gasoline would be less than the current cost of waiting in traffic on congested roads, and that infrastructure improvements would create jobs.
“It would help a hard-hit industry, and it's an investment in our infrastructure,” she said.
Louder said she’d like to know more on whether O’Malley would support a measure protecting all money in the Transportation Trust Fund from being used for any other purpose. Such a measure is “non-negotiable,” she said, because tens of millions of dollars has been diverted from the trust fund over the years to pay for other needs in the state.
“I think there’s a degree of caution, because we have to restore some trust in the transportation trust fund, and sales tax does not automatically confer that it’s going into the trust fund in the same manner,” as the gas tax, she said.
Amy Leahy
7:56 am on Thursday, February 2, 2012
Claire Louder sounds like the kind of Chamber representative - and business leader in the community - that local businesses would be better off without. Judging from her comments she has not kept up with the goings on in Annapolis concerning the raiding of the transportation trust fund and O'Malley's history of raising taxes (this budget will mark the second biggest budget increase in MD's history). As the advocate for small businesses, she also seems to lack the awareness that Maryland - because of the Democratic leadership - is ranked close to the bottom of the list of "business friendly" states. If I were a small business owner in West County, I would find another Chamber of Commerce to pay my money to, or find another CEO.
Tim Lemke
9:54 am on Thursday, February 2, 2012
Amy - perhaps it wasn't an emphasis in this article, but I can tell you that in my conversations with Claire, she and other business leaders are extremely focused on trying to ensure that any money raised for transportation is used for that purpose. They have advocated for a Constitutional Amendment to accomplish this. In fact, one of Claire's concerns is that a sales tax could, at least in theory, not actually be directed into the transportation trust fund in the same way that a flat gas tax would. Thus, if there was a measure to protect the trust fund, that sales tax money might be exempt from protection. But we'll have to wait to see what the bill says and how the legislature responds.
McGibblets
11:49 am on Thursday, February 2, 2012
"A broad coalition of business groups, including the chamber, has endorsed a 15-cent increase on the gas tax to help raise more than $800 million for transportation improvements in the state"
Of course they do! More transportation to bring them more business.... at the expense of everyone. Sadly if the cost were instead imposed upon the area businesses and chambers, we would only see it ourselves anyway in higher prices etc. I still believe this is an issue that should be resolved with current revenue, there is no need for more, only better management.
Ryan Stavely
4:29 pm on Thursday, February 2, 2012
Who should pay for that expense, then?
I'm not sure I buy the "people can't afford it" argument - using the "average driver" (13,476 miles) driving an "average car" (21 MPG) means that people will pay an extra $175/year. In the grand scheme of things, that isn't a whole lot of money.
McGibblets
5:06 pm on Thursday, February 2, 2012
Ryan, its not clear who you are replying to but in the event it is to my post, I addressed that.
Ryan Stavely
5:21 pm on Thursday, February 2, 2012
I'm not sure that you did. Your complaint seemed to be that we all pay, either directly or though higher prices by businesses. Be it at the current level or not, who should pay for roads?
McGibblets
8:19 pm on Thursday, February 2, 2012
as stated at the end of my original post:
"I still believe this is an issue that should be resolved with current revenue, there is no need for more, only better management."
There is more than enough revenue for the state and county, they simply mismanage far too much, far too often.
Ryan Stavely
8:55 pm on Thursday, February 2, 2012
And as I stated at the end of mine, "Be it at the current level or not, who should pay for roads?" Most of your post complained about who was doing the paying, not the current level of revenue.
McGibblets
2:28 am on Friday, February 3, 2012
Ryan:
Lets not act as if that was stated in your ORIGINAL post, for that point was simply 'who should pay for that expense' regarding the rise in transportation costs, which I already stated there is no need for a rise in revenue.
You then reworded to 'who should pay for roads' which is irrelevant to my point that they do not need new funds to address the issues with this road.
Ryan Stavely
7:24 am on Friday, February 3, 2012
By "that expense" I was referring to transportation expenses in general.
Sorry that wasn't more clear to you.
McGibblets
7:35 am on Friday, February 3, 2012
That is a discussion for another day, as far as this story is concerned though my point stands.