This was a little tidbit in the news recently. While efforts to raise the tax on a gallon of gas 50%, jack up the price of a car by up to $3,000, and add 1% to the state sales tax have grabbed headlines recently in Maryland, one legislator has come up with the bright idea of a fund that will take in the proceeds of gift cards that the state would consider forfeited property after four years.
Joseline Pena-Melnyk is the leader among 38 sponsors (none local) in the House of Delegates for H.B. 1080, which creates the “Maryland Education Fund”. By fiscal year 2012, estimated revenue from this bill would be close to $100 million. So those gift cards you may stash in a drawer and forget about will become state property in 48 months.
Of course, that’s just the start. You know that sooner or later, the General Assembly will push the time frame back to 24 months, then to 12. Regardless, when someone gives you a gift card, you already have to pay sales tax on what you buy with it (in most cases) so forfeiting the leftover dollar or two (or the entire amount if you don’t use it at all) simply amounts to a sneaky extra way for the state to dig into our collective pockets.
The hearing for the bill was held last week, but no committee vote has been held on H.B. 1080 yet.
I know the state faces a structural deficit in coming years, but could it be that maybe, just maybe, we look at ways to cut spending instead of automatically looking to the taxpayer to pick up the slack? Or, if you really must enhance revenue, start by not giving illegal immigrant children in-state tuition.
Sooner or later, the taxpayers of the state will get it. I just hope it’s before what we get is the short end of the stick shoved where the sun doesn’t shine.
…”I know the state faces a structural deficit in coming years, but could it be that maybe, just maybe, we look at ways to cut spending instead of automatically looking to the taxpayer to pick up the slack?”…
It sure didn’t happen in Wicomico County. The taxpayers revolted and established a revenue cap and the Council still does not get it. The County government continues to spend like it is a bottomless checkbook and any shortfalls are routinely attributed to the revenue cap. Department heads have become expert and discussing their fiscal woes in the media and always adding the tag that their ability to serve the public is up in the air due to the revenue cap. Rai Sharma is a master, most recently adding the budget woe to his comments regarding pot holes. In his interview, he admitted that such issues will not plague Wicomico this year, but still had to add that his ability to maintain the roads is hampered by the budget cap. At least some of the County money seems to have gone to a “Spin 101” class somehere. If they gave such energy and attention to trimming expenditures then the cap may not be needed.
You’ve got to love the Town of Delmar, DE. Enjoy the increases Folks.
Does Maryland really face a structural deficit?
I think we need to look through revenue and budget projection over the past number of years and see if actualy receipts (and expenses) match up to what was expected. Or is this structural deficit simply a device for those who believe that governing (responsibly) is the synonym to taxing.
The problem is that Maryland, like most other government entities, wants to be all things to all voters – in other words, they’ve found that the key to maintaining their elective office is to shower voters with as many goodies as possible.
Rare is a government that plans beyond the next election cycle, and in their myopia they only see to it that any consequence to their actions gets punted down the road for the next person in office (after they decide to retire on the public dime) or the next generation is left to handle this.
And this is part of why I see things changing as a 50 year plan. We’re not going to turn the Titanic around on a dime, folks, and that iceberg is within sight. At this point we just have to hope that the hole is not too gaping.