MDGOP to Democrats: return “dirty contributions”

Well, this is an interesting case indeed.

It seems that a Catonsville developer flouted campaign contribution laws by soliciting associates of his to make “straw donations” on his behalf to a Democratic Baltimore County Council member. Multiple reports relate that Stephen Whalen is on the hook for over $50,000 in fines for these transgressions.

To be perfectly honest, I don’t believe in campaign contribution limits so the Whalen conviction was a witch hunt of sorts. Yet there is a side to the story which should be exposed and that’s the sheer number of candidates and slates that Whalen and his companies made nearly $200,000 in contributions to over the last several years. Most of us who follow the law know that the limit for a state election cycle is $4,000 in donations to a particular candidate and $10,000 in total for the cycle.

David Ferguson of the MDGOP sent me a list of those who benefited from the largess, and it reads like a who’s who of Baltimore-area Democratic politics (with a couple exceptions.) Let’s start from the top, shall we?

  • Democratic National Committee
  • National Association Industrial & Office Parks PAC
  • President Barack Obama
  • Former Presidential candidate Hillary Clinton
  • Congressman Elijah Cummings (7th District)
  • Former Congressman Frank Kratovil (1st District)
  • Governor Martin O’Malley
  • Comptroller Peter Franchot
  • State Senator Delores Kelly
  • State Senator Edward Kasemeyer
  • House Speaker Delegate Michael Busch
  • Delegate Emmitt Burns
  • Delegate Adrienne Jones
  • Delegate Stephen DeBoy
  • Delegate James Malone
  • Delegate Stephen Lafferty
  • Delegate Peter Hammen
  • 23rd District Slate
  • District 12A Slate
  • Howard County Executive Ken Ulman
  • Baltimore County Executive Kevin Kamenetz
  • Former Baltimore County Executive Jim Smith
  • Baltimore County Council member Vicki Almond
  • Baltimore County Council member Kenneth Oliver
  • Baltimore County Council member Cathy Bevins

It’s not the whole list, as there were a few primary losers in the bunch. There were also five Republicans named, with Bob Ehrlich and Baltimore County Council members David Marks and Todd Huff the three winners among the group. (Marks has returned his contributions from Whalen.)

Ferguson condemned the Democrats who have been recipients of over 95% of Whalen’s generosity. In a statement, the MDGOP’s Executive Director says:

Those who have received contributions from Stephen Whalen should follow the lead of Baltimore County Councilman David Marks and return his dirty contributions. Whalen gave over 96% of his contributions to Democrats and it is unacceptable for nearly $200,000 to be floating through the Democrat Party’s coffers from an individual convicted of political corruption.

Stephen Whalen’s conviction is another consequence of Maryland being a political monopoly for Democrats and their cronies. Unfortunately, this culture of corruption is standard operating procedure for crooked politicians and donors like Stephen Whalen looking to pay-for-play. For six years, Martin O’Malley and his allies have willfully embraced the lack of ethics in their government.

There’s no doubt that money may have been the lubricant for Whalen to grease the skids on getting his developments built: his company’s website states they specialize in medical office space around the outskirts of Baltimore.

(I find it somewhat ironic, then, that he supports many of the same Democrats who have voted to curtail growth in rural and suburban areas. Perhaps there’s more infrastructure in areas Whalen is interested in.)

So once again the state’s majority party is caught with its hand in the cookie jar, but do they condemn this violation of the law? No, they’d rather take potshots at Andy Harris for voting against a pork-laden hurricane relief bill. Their silence on the transgression is deafening and speaks volumes about the corruption they’re happy to put up with for political gain.

Bonus research

I was writing something the other day as a possible addition to another venue, and in doing the research kept the link on my bookmark bar for future reference. Well, as it turns out I didn’t need the extra research for the other piece but I wanted to make my point on the subject. So here are more of my thoughts on the prospect of an additional Maryland gasoline tax – something I originally visited in January.

The two pieces I found were comparisons – one being the current gasoline tax table provided by the Tax Foundation which shows Maryland’s gasoline tax rate is currently tied for 29th among the 50 states. The second is an older comparison table that I found, and the reason I wanted it was to determine where Maryland’s gasoline tax ranked among its peers when it was adopted in 1992. (I couldn’t find 1992, but figured 1994 was close enough.)

It’s quite telling to me that back in 1994 our state had one of the highest gasoline tax rates, with only a handful of states charging more: Connecticut, Montana, Nebraska, Nevada, Oregon, Rhode Island, and West Virginia. Worse yet, only Montana, Nevada, Rhode Island, and West Virginia charged more tax on diesel fuel. In 1994 our taxes were a full 30% higher than the national average, but because states have began to add various other fees and local tariffs we remain above the average insofar as excise tax is concerned but slightly below the mean in overall taxation per gallon. Apparently 20 years is long enough and we have to break out of the pack and lead the country once again.

Since several states now add various amounts of sales tax to the price of gasoline at the pump, it’s difficult to accurately say just where Maryland would rank if gasoline prices were significantly higher or lower than they are today should they adopt Governor O’Malley’s idea of an additional sales tax phased in over three years. But it’s obvious we would be paying more at the pump regardless of the price – even if Newt Gingrich could get gasoline back down to $2.50 per gallon that’s still an extra 15 cents per gallon, or around $2-3 per fillup depending on tank size. At $4 per gallon the fee goes up to perhaps $4-5 for every tankful.

(Note that there’s also a number of alternative plans being floated around for a straight per-gallon excise tax increase, which would make the impact more easily gauged. Adding 15 cents per gallon, as one proposal advocates, would put us just a tick behind North Carolina as the highest-taxing state in terms of excise tax.)

Regardless of what proposal to increase fuel tax is adopted, when combined with the additional tolls being charged by the Maryland Transportation Authority at their facilities (including the Bay Bridge) the cost of getting around via car will certainly jump. By next summer driving across the state from Cumberland to Ocean City and back on a 12-gallon tankful of gas each way may well cost $15 extra in taxes and tolls alone from the price in 2011 – before the new tolls were adopted for the Bay Bridge and other MTA facilities.

The stated reason for the increases are quite simple: the state claims it doesn’t have enough money for road and bridge construction. Yet the MTA toll increases spared the Inter-County Connector and gasoline taxes tend to come down harder on rural residents who have to drive farther to work and shopping. In sum, they tend to serve as a wealth transfer from rural to urban dwellers, particularly in the Washington metro area because the ICC tolls did not go up. Moreover, the tendency for gasoline taxes to be spent on mass transit provides a further shift in prosperity from rural to urban; one particularly galling when a mostly empty train or bus goes by.

The main reason the state “needs” this tax increase, though, is to patch over the holes created by several administrations by raiding the Transportation Trust Fund (TTF). It’s an art which has been perfected by Martin O’Malley because he wasted the $1 billion-plus raised by a series of 2007 tax increases Democrats rammed through the General Assembly on a program of further spending rather than simply addressing the vital functions the state is supposed to provide. So now he and Annapolis Democrats are coming back to the people of the state with hat in hand begging for more, and promising this time they’ll “protect” the TTF. Well, I want the protection first, and a number of bills in the General Assembly deal with this. Unfortunately, Delegate Norm “Five Dollar” Conway and Senator Edward Kasemeyer don’t seem to have much desire to move these bills. But I’ll bet they’ll move that gas tax along in a hurry.

It’s quite likely that over the next few years our gas prices will either be going up at an accelerated rate or not dropping as quickly as they could because the state of Maryland will take a larger bite from our wallet through the gas tax. Maryland doesn’t seem to want to be a national leader in anything except loony liberalism and high taxation, and the controversy over highway funding provides another perfect example.