Saving jobs by not raising taxes

Tomorrow begins the hearing process for a piece of legislation dubbed the Lorraine Sheehan Health and Community Services Act of 2011. But if there were truth in advertising, the bill would be called the Vast Alcohol Tax Increase Act of 2011 And Beyond.

By raising taxes what they claim would be a “dime a drink” a group of General Assembly Democrats claim they can raise over $215 million for mental health services. In truth, they’re attempting to raise taxes nearly sevenfold on distilled spirits, over sevenfold on wine, and by a factor of almost thirteen on beer. If they indeed raise the beer tax from 9 cents to $1.16 per gallon it raises the price of a 12-pack by over a dollar. Since most people buy their alcoholic beverages in the form of multiple drinks (such as a case of beer or a fifth of whiskey) the price change would be much more than a dime.

Moreover, the proceeds would be spread out over a number of funds, including the General Fund. (A portion is even earmarked for tobacco cessation.) But here’s the real reason we “need” this extra tax:

The 2007 Governor’s Working Families and Small Business Health Care Coverage Act has expanded health care to over 52,000 parents but has not been implemented for tens of thousands of childless adults because of lack of funds.

Yet I thought that’s what the 2007 Special Session tax increases were for! I guess they found out they hadn’t extorted enough from working Maryland families.

There is a new website up to combat this tax increase called Save My Maryland Job. It claims that the crossfiled HB121/SB168 would cost the state 8,300 jobs in the hospitality industry. This would hit the local tourism industry hard, since Ocean City’s “family resort” certainly has a number of establishments which sell alcohol. “Our state’s hospitality industry contributes more than $4.55 billion in economic activity and employs 2.2% of the state’s workforce,” they claim.

It always seems the solution to Democrats is to raise taxes. So far this session there are proposals to raise taxes on booze, increase the gas tax, charge a fee for using plastic grocery bags, jack up the cigarette tax again, and so on. (That was just from a quick one-minute perusal of bills under the category of revenue and taxes.)

But we are tapped out, and instead of backing off the process of taking over our lives it appears the majority in the General Assembly might insist on doubling down. Haven’t they done enough damage?

The Senate bill will be heard tomorrow at 1 p.m. If other hearings are a guide, look for a number of so-called victims to be trotted out while opponents get short shrift.

Author: Michael

It's me from my laptop computer.

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