If you’re in for the penny, you’re in for the pound

A week or so back I referred to one of Delegate Michael McDermott’s summaries of the 2013 General Assembly session, and he’s come back with another installment today. In this one, he laments the economic effects of those “few pennies” we’ll be paying every day to the state in additional taxes and fees by reminding us that businesses will be paying them, too. McDermott concludes that:

As the government draws more money out of the economy through these new taxes and fees, taxpayers (and) consumers find themselves with fewer discretionary dollars. This always results in fewer dollars being put back into our local economy and every point of commerce suffers. When business slows, expansion is put on hold. When business suffers loss, people lose jobs.

All this seems to be basic common sense which is lost on those who inhabit the Maryland General Assembly and vote with the majority party. It somehow never seems to seep into their consciousness that business aren’t going to pay maybe $100 a year for the so-called “rain tax” or the promised no more than $2 a month for “green” energy, nor will the effects of ever-increasing gasoline taxes be minimal for them.

The problem they have is twofold:  the Maryland economy is dynamic and the geography is static. From my house I can be in Delaware in 15 minutes and Virginia in about 40. It’s worth pointing out that just four of Maryland’s 23 counties aren’t on a state border (Anne Arundel, Calvert, Howard, and Talbot as well as Baltimore City) while several border two states and Washington County touches three. Certainly it’s not like larger states where traveling to a different jurisdiction to take advantage of their business climate involves the expenditure of several hours and a half-tank of gas.

So Maryland has to compete on a playing field which is far from level, and savvy consumers know just where to go to get the best deal. It’s no wonder that neighboring states have large shopping meccas close by Maryland’s borders.

Now this isn’t all bad news for Marylanders, as some cross state lines to work just as some who live in neighboring states make up Maryland’s too-slowly growing workforce. But as critics like McDermott and Larry Hogan of Change Maryland point out, we can do better.

And don’t think Mike isn’t seeing the political reality. Note this passage in his report:

I am not sure where the disconnect lies with legislators who see nothing wrong with this tax and spend approach at governing, but I am quite sure the public is fully able to connect the dots. I was recently at a meeting of local business owners and entrepreneurs when a senator told them that what they could “conceive…the government would help them achieve.”  Sadly this was repeated so there was little doubt where he was coming from in his thoughts regarding the purpose and scope of government.

It wouldn’t surprise me if the Senator in question isn’t the person McDermott will be facing next year.

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