Annapolis, Maryland – Democrats in the Maryland House of Delegates have unveiled a significant $1.2 billion tax, toll, and fee increase package aimed at addressing the state’s budget challenges. The proposal, designed to push state senators into negotiations, includes measures such as legalizing and taxing online poker and other internet gambling, a new fee on electric vehicles, increased taxes for corporations, sales taxes on used car trade-ins, a fee on ride-share trips, and higher tolls for out-of-state drivers.
The goal of the package is to generate $525 million annually for a crucial education program and an additional $675 million annually for transportation projects. These priorities, important to Democrats, face financial uncertainty in Maryland’s stagnant economy. The education program, in particular, is projected to face funding shortages in the next two years, emphasizing the need for sustainable revenue sources.
Governor Wes Moore has ambitious goals, such as ending child poverty, but acknowledges the necessity of adequate funding to achieve them. House Speaker Adrienne A. Jones emphasized the urgency of addressing the state’s financial challenges, stating, “We can no longer rely on quick fixes or short-term approaches.”
The proposal has sparked divisions among Democrats, with Senate President Bill Ferguson expressing reluctance towards across-the-board revenue hikes. While the Senate has proposed its own plans for toll increases and fees on electric vehicles, Governor Moore has emphasized the need to prioritize economic recovery before considering tax increases.
The tax debate in Annapolis revolves around not whether to raise taxes, but when to do so. Declining gas tax revenue and rising construction costs have resulted in a significant deficit in the state’s transportation budget, prompting budget cuts and service reductions. Democrats’ education program, known as the Blueprint for Maryland’s Future, requires substantial annual revenue to sustain initiatives such as improved teacher pay and expanded services for high-poverty schools.
The tax package proposed by House Democrats is reminiscent of the $1.4 billion tax increase enacted during a 2007 special session. Republicans have criticized the proposed tax increases, with the Maryland GOP highlighting the potential impact on workers and rallying against what they term as the “biggest tax increase in state history.”
House Democrats argue that securing adequate funding is crucial to ensuring equity in education across zip codes. The choice, they assert, is between upholding the state’s commitment to providing quality education for all children or compromising on that promise. Vanessa Atterbeary, House Ways and Means Chair, emphasized the importance of not turning their backs on the commitment to equitable education.
In conclusion, the proposed tax, toll, and fee increase package in Maryland underscores the pressing need for sustainable revenue sources to support key priorities such as education and transportation. The debate highlights the complexities of balancing budgetary concerns with meeting essential needs within the state.