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 on Wednesday that the decision would be unpopular but much needed.
The governor made his comments in Annapolis 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," O'Malley said. "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 General Assembly 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 reductions, cuts 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.
Amy Leahy
8:41 pm on Wednesday, February 1, 2012
OweMalley's rhetoric is right out of Obama's playbook. Makes sense knowing that OweMalley plans to run for president in 2016. How stupid does he think Marylanders are? I know people are waking up to the abuse we've been taking at the hands of the 3M's - Mike, Mike & Martin - and it's time to vote the other 2 out of office.
Jim Davis
11:39 am on Thursday, February 2, 2012
It isn't how stupid he thinks we are. It is how Gullable the citizens of the other 49 states are.
Tommy Mims
11:34 pm on Wednesday, February 1, 2012
Ok all you stupid dumocraps, you're getting your wish - more Maryland taxes. $.18 per gallon on top of the $.23 already levied. Hmmmmm, it wasn't that long ago when the actual price of a gallon was $.41. This tax plus more that are sure to come under comrade o'malley's rule could have been avoided by opening up areas containing generations worth of petroleum reserves. And the Canadian pipeline to Texas refineries? - oh no, obama has decreed that we don't need that fuel so now it's going to China. Not to worry though, we have a bunch of eco-friendly clean energy operations whizzing along like a well "oiled" machine. Weeeeel, maybe not. There are twelve (12) clean energy companies currently having trouble keeping there batteries charged, so to speak. Tax payer dollars subsidized them to the tune of $6.5 billion, and so far six (6) of those have filed for bankruptcy: Beacon Power, Evergreen Solar, SpectraWatt, Eastern Energy, Ener1 (the most recent), and Solyndra. obama had NO job experience before illegaly running for President. Unless you call street agitating and racially related community organizing preparatory experience for a presidential candidate. Oh, almost forgot, he corruptly won a senatorial election, serving two (2) years before deciding that he was ready to be POTUS. Then I could mention george sorros, but you stupid 'crats probably never heard of him. I could write a fat book about "The Kenyan Village Idiot", and his minions like o'malley. Maybe I will.
JustABill
1:35 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!
Joe Robinson
3:38 pm on Friday, February 3, 2012
I could not agree more with you JustABill - and you too Tommy Mims!
Andrea
9:08 am on Thursday, February 2, 2012
I was just reading about Virginia - Virginia is growing faster in population than the nation as a whole. Gee, I wonder why?
Double D
10:03 am on Thursday, February 2, 2012
But he is so dreamy and plays in an Irsih band, I just have to vote for him! O'Malley is a terrible govenor, when MD's residents are hurting the most he has decided that he should hammer them for more money:
A monthly charge for the right to have an EZ Pass (Take a note from other states, buy the EZ Pass for $10 at issue and then its yours, thats probably more palatable than a recurring fee that O'Malley is sure to raise in the future)
Jack up the price for tolls, not a minor increase but a major increase
A massive ADDITIONAL state gas tax, this time a % so if we hit those $5 a gallon figures this summer like some have predicted we are hit even harder (Oh thats right "unless there is a spike" sorry Marylanders I know you can't stop gazing into those lovely eyes but he is just telling you that, once the tax is in place its gonna be in place because I can hear O'malley now explaining that $5 a gallon isn't a spike because it is in line with what some other countries pay per gallon)
Lets talk about Mike Miller, a guy with a cemented "elected" position, somehow everytime you see him on TV in the middle of winter he sports a suntan that can only come from spending way to much time in a tropical climate you have to wonder if the guy should be forced to leave office and get a job like the rest of the Marylanders he suppose to be serving. Everyone is entitled to a vacation if they can afford it, but this guys is living a charmed life on our dime.
hmj
10:21 am on Thursday, February 2, 2012
Way too much fraud and waste in state programs. Taxes in Maryland are among the highest in the nation. Stop the fraud and waste in Maryland Medicaid and in the Earned Income Tax Credit. Millions are wasted every year.
Patrick Mondor
10:26 am on Thursday, February 2, 2012
Wait for it....the liberal/progressive posters of the Patch telling us "rich" people that we simply don't pay enough...in 3...2....1...
Mrs. G J Moore
10:34 am on Thursday, February 2, 2012
A total idiot without a kind bone in his body and care less about the working person. The thing is if you want to vote for him OK as long as it does not affect us who don't vote for him. Would be nice huh?
cynthia
12:06 pm on Thursday, February 2, 2012
I often wonder, just when are the people in this state and country going to wake up?
The politicians will point the finger and say, "yeah, get em, those big bad oil companies." Really? The state and federal governments do not produce one drop of oil, but they in fact collect a huge amount of revenue on the state and federal tax of gasoline.
They regurgitate the same lies over and over; it's for the education of the children, we
are going to create all these jobs, etc. The corruption within the state and federal governments is staggering and disgusting. It is my hope that people will become engaged and stop voting strictly along a party line. Our government is so out of control and way to massive. Remember, it is WE THE PEOPLE!
Tim
12:53 pm on Thursday, February 2, 2012
Have a net reduction in budget and then I'll accept that we need to raise taxes to close the gap. The problem in Annapolis is that they keep spending more. Taking from one program but then giving more to others are not cuts. Hopefully this will wake up democrats to look at candidates before blindly casting a vote for the democratic ticket.
Patrick Mondor
1:26 pm on Thursday, February 2, 2012
Questions that remain unanswered. Why was the transportation fund raided in the first place that necessitates the need for tax increases? Don't forget we also have been whacked recently with an increases in tolls to apparently pay for our roads as well. Remember the howls from the Democrats in this state when Erlich raised fees in lieu of tax increases (now silence). Since then O'Malley under a Special Session pushed the largest tax increase in state history to close a "structural" budget deficit, raised taxes on alcohol, fees and now this. What do we have to show for it? Still have a deficit over 1 billion dollars. He then has the nerve to cloak all of this under the banner of "its for your children's future". The very group he claims to want to help is the same group that will be crushed by these fiscal policies. Despite all of this he was reelected two years ago by 14 points. Dems know they have this state in the bag and could care less what the opposition thinks (new districts anyone). Frankly, this state is lost....and I mean to those that want a voice and a representative govt. Nothing you say or do will ever change the balance of power in this state. It is a one party state controlled by liberal/progressives that want nothing more than power and your money. Despite early polls indicating almost 3/4 of Marylander's don't want this tax...do you really think they won't implement it? In the end these lemmings will vote Democrat. Very pitiful.
Jim Davis
5:14 pm on Thursday, February 2, 2012
"Why was the transportation fund raided in the first place?" Because he needed more money and it had some available. This is the same as any other "Trust Fund" State or Federal. Also he knows that he can always snooker us into paying more to make up for his excesses.
Kaolin
3:47 pm on Thursday, February 2, 2012
As with Obama, most Democrats, myself included, are not happy with O'Malley. If the Republicans can put a solid candidate up against him, (s)he'd have all our votes....and with the way our State and Country look right now, it shouldn't be too difficult.
DBCrofton
5:22 pm on Thursday, February 2, 2012
I sent two questions to MOM and he has not responded:
1) Where are the budget REDUCTIONS? Because of his higher taxes, I have to cut back alot in my budget. Where are the State of Maryland's REDUCTIONS IN SPENDING?
2) Instead of creating government jobs at the expense of those of us paying taxes, what is his administration doing to BRING BUSINESSES BACK TO MARYLAND??? We need private sector businesses, not taxpayer funded temporary jobs.
Does he have a grasp of economics or was he too busy in college playing with the band in bars?
I know alot of people that have left the State of Maryland for tax-friendly states. With all this garbage from MOM, the added Federal taxes from BO, I'm shaking my head wondering why we stay in Maryland. Egads! Soon there won't be enough taxpayers left to support this state.
Tea L
6:09 pm on Thursday, February 2, 2012
Ever drive to New York on the Jersey Turnpike? Or through countless other roads in other states that cost a small fortune? Let the people who use the roads pay for them like in other places, and those who don't, don't get taxed extra. Oh wait. Stupid me. Maybe that's part of the reason for the gas tax. People who use the roads more maybe should have to pay a disporportionate amount than the people who go out of their way to carpool or walk or bike or take public transportation. Or who just stay home. What a crazy "liberal" idea. Or a libertarian ultra conservative one. What the hell, let's just blame being called upon to pay for infrastructure on the "liberals" and watch some more Fox cable "news". I mean, George Bush never spent money needlessly, never bailed out a company needlessly with billions of taxpayer dollars, did he? Oh, wait.....
Lynn
9:07 am on Friday, February 3, 2012
No one has mentioned the high cost of illegal immigration in our sanctuary state. CASA (Central American Solidarity Assoc.) gets alot of our tax dollars as well. Who do you think will get most of those jobs building infrastructure? But the Democrats feel they need another "group" besides African Americans and gays to pander to for votes. We are not individuals to them we are groups. Well, when people vote as a group what do you expect? The very few times Republicans have had a chance in this state they continue to "snatch defeat from the jaws of victory" by pushing their RHINO party elites on us in an attempt at being moderate just to get elected. When the people rejected Ehrlich the MD GOP simply had a closed meeting and changed the rules. Didn't work! The number of Independent voters is growing in Maryland for good reason. Now we need candidates with substance. Maryland has the most gerrymandered voting districts in the country so I don't see much hope in changing things. The Unions rule the roost in Annapolis and Annapolis is a plantation.
It is entirely up to the electorate to change things...like I said...not much hope,
Lamarr
10:00 pm on Saturday, February 4, 2012
Everytime I think about the issue of MD being a sanctuary state it absolutely blows my mind. Arizona get's sued by the Feds for enforcing federal laws and Maryland (in the shadow of Washington DC and the Justice Dept) can flippantly thumb it's nose at federal law by declaring Md a sanctuary state?!!! With no response from Washington?? Even if you overlook that, this declaration does nothing but burden the MD taxpayer. How do the people in the state benefit? We already had many of our fellow latino Americans well represented in Md. Everyone knows its for drumming up more votes. Now if MOM will illegally produce votes, cancelling out the dissenting voices, what won't he do??!!!
BTW, I hate when they think we're so stupid that whenever need money they bring up the kids, schools, firefighters, police officers, etc. It drives me nuts...
Brian Lomax
11:35 am on Friday, February 3, 2012
A 6% tax on gasoline will never pass, and O'Malley knows this. What will eventually happen is more along the lines of 10-15 cent increase. It's a game of politics really. If the tax does eventually go through(and it will go through), it won't be "as bad" as people think it will be.
I work in transportation. Given the state of the roads in Maryland(and in the country, as someone above stated when referring to the NJ turnpike), the highway infrastructure is in desperate need for repair. It's the honest reality of the situation. O'Malley(or any politician for that matter) doesn't wake up in the morning wanting to tax people. Maryland hasn't had a gas tax increase since the 1990's. You can't put these things off forever. Politicians can't win. Nobody wants the government to spend any money to fix roads because they're worried about deficits, while nobody wants to pay for roads either. The money has to come from somewhere. I'm a Democrat, and while I'm not exactly thrilled with O'Malley, I don't think he gets credit for the good things he does do. Maryland consistently ranks in the top 10 for places to live in the country, and our public school systems have ranked # 1 in the country for four years running. It can't be nearly as bad as people are saying it is.
Does anyone want to pay taxes? No. But you generally get what you pay for. Good roads, schools, hospitals, they cost money. It sucks, but that's how it is.
Chet Brewer
7:16 pm on Friday, February 3, 2012
I guess gas taxes are the price of having pretty good roads in the state all things considered. I have lived in low tax states and dealt with the consequences of not funding roads. Raleigh Durham was the all time gem with two lane roads and multi mile backups. It took 40 minutes to commute 6 miles to work. Here I commute 14 miles in 20 minutes or so. Kind of worth it to me
Lamarr
9:15 pm on Saturday, February 4, 2012
Sir, you obviously don't know about PG county schools. Yeah..the other side of the tracks of Maryland. The black vote is locked up so they don't need to address it because we generally believe everything democrats say without question as long as they paint someone else as a racist.
David Macomber
3:20 pm on Tuesday, February 7, 2012
Hospitals? Roads? Schools? Maryland has some of the worst roads and they always repave roads that don't need it. And when they do repave a road. There is usually construction of houses or offices near these roads and what do they do? Tear up the new road. Maryland's hospitals need money after over charging you and you insurance company? Schools have portable rooms next to them. Where does all the lottery money go? The stadium authority?Yeah right. I am moving out of this f'ed up state!
Hammbone
3:49 pm on Friday, February 3, 2012
The last time they raised the gas tax ( to the highest in the us at the time ) they told us it was to fix all the roads, and we would never see another tax increase! so, they used the money for other things. How do they get away with it?
Hammbone
4:05 pm on Friday, February 3, 2012
Tell O'Malley what you think.
http://www.governor.maryland.gov/mail/
Brian Lomax
6:46 am on Monday, February 6, 2012
Lamarr,
I grew up in PG County, lived there for 16 years. I know all about it. And I disagree wholeheartedly with your last sentence.
Gambrillsmom
3:49 am on Saturday, February 4, 2012
No one wants to pay more in taxes, but get some perspective--go to the UK or mainland Europe or Asia and take a look at gas prices--many consumers pay more in taxes than we do in total. Or just take a trip up to Canada. The US as a whole is long overdue for a reality check regarding the true cost of our oil consumption. This is a drop in the bucket.
Lamarr
9:23 pm on Saturday, February 4, 2012
Not sure if it's the point you meant to make but this is the "it's not the worst in the world so it must be ok" argument. Not a good way to live. This is America! The land of the free and home of the brave!
Gambrillsmom
11:34 pm on Saturday, February 4, 2012
I don't know if you're intentionally missing the point or what, but this isn't the "could be worse" argument. it's a "wake up and realize the consequences of our actions" argument. The cost of gas and oil is not just what we pay at the pump, and Americans by and large either don't realize it or just don't care. And a "this is AMERICA!!!!" statement adds nothing. Indeed, this is America, and we need to get our act together.
John Thomas
8:28 am on Saturday, February 4, 2012
Brian: Since Maryland schools are ranked # 1 you should try sending your kids to Baltimore City public schools then. Have at it...
cynthia
12:21 pm on Saturday, February 4, 2012
John, since you mention Baltimore City schools, did you know that the
current governor was mayor of Baltimore City and there was no improvement
in those schools, matter of fact, there was a huge amount of money that was
lost and never found on his watch. If you want to know more about this, Clarence Mitchell IV, would be able to inform you. Most teenagers in BC schools NEVER graduate.
Lamarr
9:31 pm on Saturday, February 4, 2012
Amen John. Like I mentioned before, it's a black constituent. When "the other guy" is a "racist", we blacks lose our minds, logic goes out the window and nothing else is a priority.
Brian Lomax
6:48 am on Monday, February 6, 2012
John,
Don't have any children as I'm only 23, but sending my kids to Baltimore City schools still wouldn't take away from the fact that on the whole, Maryland has the #1 school system in the country would it? Furthermore, I never said our schools were perfect. Of course, there's still work to be done. But there's a lot of good to be found as well.
John Thomas
12:42 pm on Saturday, February 4, 2012
Cynthia : My comments to Brian were meant to be facetious...
cynthia
2:22 pm on Saturday, February 4, 2012
Yes, John, just didn't know if you knew the past history of the awful governer we have.
I was also trying to enlighten Brian, since he admits being a Democrat. I for one, would not mind in the least paying for existing roads being repaired. At least I could
benefit from it and see that my tax dollars are being spent in a good way and not
wasted. Also, Brian must not know that the Transporation Fund was robbed by the current governor to balance our state budget along with new spending. I just do not see how anyone could even begin to give credit to the governor for the good things he has done. WHAT??? For giving us the largest tax increase in our state's history as well as a 20% increase in the sales tax.
The governor was also ranked as the worst governor in America. And let's not forget
how many business' have moved or closed down since he has been in his current position. It would be best for us, if he simply played in that band of his fulltime.
Brian Lomax
6:49 am on Monday, February 6, 2012
"Amen John. Like I mentioned before, it's a black constituent. When "the other guy" is a "racist", we blacks lose our minds, logic goes out the window and nothing else is a priority."
Goodness.
Phillip
5:18 pm on Tuesday, February 7, 2012
You know he just wants the gas tax to be tied to sales tax so that he can then raise the sales tax from 6% to 7%. His administration has done a remarkable job at spending tax payer money. Unemployment is over 8% and he wants to spend more of your money to 'make jobs'. Yeah, just like that Stimulus plan of the President made a lot of long term jobs in Maryland.
Matt Bryant
7:51 am on Saturday, February 11, 2012
Why do politicians think raising taxes is going to help people?? Have they ever thought of lowering taxes or do they know what that means. If we have more money well spend more money. Quit takin money out of our pockets
Wild Bill Cody
8:03 am on Thursday, February 23, 2012
Here's a novel idea...lets reduce the gas tax...and reduce government...in the case of government...less is more...
Phillip
10:28 am on Thursday, February 23, 2012
Dear O'Malley, our President is worried about the price of gas yet YOU continue to push for additional taxes on it.
http://www.washingtonpost.com/business/obama-to-discuss-rising-gas-prices-at-florida-event/2012/02/23/gIQA1xgIVR_story.html
http://www.reuters.com/article/2012/02/23/us-campaign-obama-gasoline-idUSTRE81M0B920120223