Tax Increase

Highways are often regarded as the ultimate example of user-financed government. Motorists pay a variety of fees, from state and federal taxes on fuel to titling and registration fees on vehicles, to pay for their construction and maintenance. But are roads truly self-sustaining? A new study says absolutely not. Researcher Mark A. Delucchi of the University of California, Davis' Institute of Transportation Studies recently looked at the nation's total expenditures on roads and compared the result with the total collected in highway-related taxes and fees.

Business leaders joined Senate President Thomas V. Mike Miller yesterday in pushing for an increase in the gas tax to pay for new roads and mass transit, though support for his proposal to raise the levy by 12 cents-a- gallon was not universal. Miller said he does not expect his plan, which would raise the current rate by 50 percent and tie future increases to inflation, to pass during the current General Assembly session. But he testified during a hearing before the Budget and Taxation Committee yesterday that the state needs $400 million to $600 million a year in additional funding to meet its needs.

Seeking to end unrest among many county workers, Baltimore County elected officials said yesterday that they had settled a dispute between the government and its employees over retirement benefits. The council also adopted a $2.5 billion budget that will not require a tax increase. The council members made minor cuts in the spending plan proposed by County Executive James T. Smith Jr. The retirement issue had become the toughest fiscal decision for the council members in recent weeks.

WASHINGTON -- The tax-writing panel of the House voted yesterday to boost taxes paid by managers of many investment firms, as part of a broader tax-relief plan for millions of households who would owe extra money this year under the alternative minimum tax (AMT). The action by the House Ways and Means Committee ignited a struggle that will be played out in the coming days, as members battle over plans to prevent the AMT from hitting 23 million households this year. More broadly, the debate yesterday was a preview of conflicts over economic policy that will be heard in the presidential campaign and after next year's election.

Insuring children really does pay off As pediatricians, we see the human benefit of the State Children's Health Insurance Program every day for the patients and families who come to our clinics. We were therefore dismayed to learn of the Bush administration's recent attempts to restrict the program ("U.S. rules threaten aid to children," Aug. 23). Limiting eligibility for insurance and increasing waiting periods for care are barriers that prevent children from getting the health care they need.

No reason to rush to special session Gov. Martin O'Malley has taken on the Herculean task of trying to raise $1.7 billion in revenue to balance the state budget. However, calling a special session will not serve the people of Maryland well ("Time to cut bait in Annapolis," Opinion * Commentary, Sept. 30). Such an important topic deserves time for input, discussion and debate. The citizens have a right to be heard and to have their views given fair consideration. This is not an emergency.

The House of Delegates approved a $17.5 billion state budget bill yesterday that would give lawmakers the option of accepting or refusing Gov. Parris N. Glendening's proposed tobacco tax increase.A majority of House Republicans joined all but one Democrat in passing the Glendening budget on a 127-12 vote. The bill, which would cut $173 million from the governor's proposed budget, moves to the Senate.Del. Howard P. Rawlings, the House Appropriations Committee chairman, said the budget is balanced whether or not they approve the governor's proposed $1-a-pack cigarette tax increase.

Anne Arundel County residents consider education a top priority and the estimated $400 million school repair bill a serious problem, but they're loath to raise property and income taxes to pay for it, according to a recent community college poll.They would rather have the county borrow for repairs or use funds from a lottery, the poll by Anne Arundel Community College's Center for the Study of Local Issues showed."I am not sure what people fear about raising taxes," said Dan Nataf, director of the center.

The governor's plan to increase the tax on cigarettes by a dollar a pack is in trouble in the General Assembly, key lawmakers said yesterday.The bill, which would also impose a new 25 percent tax on other tobacco products, is expected to survive a committee vote this week in the House of Delegates, but faces stronger opposition in the Senate."

Writer needs a further look at scripturesIn the typically morally superior and biblical proof-texting fashion of the religious right, letter writer David A. Dilegge ("Quoting Bible, knowing its meaning are different," Jan. 3, The Sun in Howard) demonstrates not only his nearsighted and selective reading of the scriptures, but also his limited understanding of God's forgiving grace as taught and demonstrated by Jesus of Nazareth as recorded in the New Testament.By apparently suggesting that forgiveness is not warranted for the president because the assumption cannot be made that he will sin no more, Mr. Dilegge ignores the admonition of Jesus, "Do not judge, so that you may not be judged" (Matthew 7: 1)

A bill under consideration by the General Assembly would add a 5-cent tax to the purchase of alcoholic beverages ("The enablers in Annapolis," editorial, March 19). It would be easy to argue that this increase only amounts to pennies per drink or to point out that Maryland has the lowest excise tax on distilled spirits in the nation. You could even contend that this tax hike is long overdue - the last time Maryland raised its alcohol tax was 54 years ago during the Eisenhower administration.

Before Gov. Martin O'Malley and Maryland legislators cut another penny from classroom aid, before they balance the budget by reducing mental health services or Medicaid and before state employees are furloughed again, they must reform a decrepit alcohol tax structure that's become impossible to stomach. How bad is it? Maryland has the lowest tax on distilled spirits in the nation at $1.50 per gallon. The taxes on beer, 9 cents per gallon (less than one penny per 12-ounce can), and wine, 40 cents per gallon, rank near the bottom of the list, too. This has been a boon for those who make a living selling alcohol, but it's profoundly misguided public policy.

A gallon of gas costs less than $2, and Maryland's gasoline tax hasn't been raised for 15 years. But don't look for Howard County's State House delegation to lead the charge in Annapolis for a tax increase to prevent big cuts to commuter transit and highway projects. If the proposed Mass Transit Administration cuts become reality Jan. 12, scores of people who responded to $4-a-gallon gas by heeding the government's call to use mass transit will feel as though they've been thrown under a bus - if there is one. To counterbalance declining revenue, state officials are considering cutting $1 billion from transportation projects now and maybe twice that much later.

MIAMI - Make way, Barack Obama and Sarah Palin - it looks like there's another polling phenomenon in Florida: the Joe the Plumber Effect. As he pounds Obama for telling America's most famous handyman that he wants to "spread the wealth around," John McCain is improving his standing in Florida, with a poll showing the Republican presidential candidate with a 1 percentage-point lead yesterday. The Mason-Dixon Polling and Research survey shows McCain's numbers have remained static at 46 percent since early October, while Obama's support has decreased three percentage points to 45. The results mirror three other Florida polls this week that, taken together, show the race is dead even as Democratic nominee Obama's momentum appears to have slowed.

In previous years, The Baltimore Sun's editorial board has rightly rejected slots. This year, it has endorsed legalized gambling ("Yes on Question 2," Oct. 19). The editorial argued that making large cuts in spending would be too painful because education and health care are too important to cut, and that raising taxes would be too harmful to the economy. Hence the editors endorse legalized gambling as an economically painless way to raise revenue. But slot machine gambling would do the same thing that increased taxes would do: transfer hundreds of millions of dollars from the people of Maryland to the government.

The Baltimore City Council voted yesterday to increase the parking tax and use the expected $4.5 million in revenue to operate a fleet of shuttle buses to ferry people around downtown neighborhoods. Trips in the hybrid shuttles would be free to passengers, with pickups every 10 minutes along three routes. The service is expected to begin in July 2009. Mayor Sheila Dixon's administration proposed the legislation. The tax increase, which takes effect in December, will likely mean a 50-cent increase in the cost of daily parking, and a $5 to $6 rise in monthly parking costs, city officials estimate.

State bean counters blame the crash in sales-tax collections on high gas prices and a weak economy. I bet there's something else going on. In January, Maryland's sales-tax rate rose by a fifth. To 6 percent. If you don't think that's compelling more people to avoid the tax by shopping on the Web or driving to "tax-free" Delaware, keep reading. Given Maryland's budget hole, raising the sales tax from 5 percent to 6 percent was probably necessary. But as much as small states such as Maryland like to steer their own destinies, forces from across the border often cause detours.

When Maryland doubled the cigarette tax to $2 a pack, some residents may have found a reason to quit. Smugglers, on the other hand, seem to have found a motive to step up their activities. Since the tax increase took effect in January, agents with the Maryland Comptroller's Office have seized more than 46,000 packs of contraband cigarettes - smokes brought illegally across state lines. That's a nearly four-fold increase from about 13,000 packs seized over the same period in 2007. And in the largest bust so far this year, agents confiscated nearly 8,000 cigarette packs after stopping a man driving a Chevrolet Astro van on Interstate 495 this month.

Harford County Executive David R. Craig has proposed an $895.8 million budget for fiscal 2009 that addresses declining revenues with no jump in taxes and the smallest increase in spending in the past 10 years. "There is no tax increase and no increases in fees of any kind," Craig said. He detailed "the outside events" that have affected Harford's financial outlook, most notably the $11.5 million in cuts made during the General Assembly's special session in November, as well as the faltering national and state economies.

Legislators took a first step yesterday toward repealing Maryland's new computer services tax and replacing it with an income tax surcharge on millionaires, the most significant victory yet for business groups warning that the levy could destroy the state's high-tech economy. The Senate Budget and Taxation Committee voted 10-5 for the repeal plan, which also calls for cuts to transportation funding and to other state programs. Senate President Thomas V. Mike Miller praised the committee members for a "courageous vote" but predicted a "much more" contentious hearing before the tax-weary lawmakers in the full Senate.