Wednesday, August 20, 2008

When will Gov. O’Malley get it right?

The three Amigos of tax reform

Governor O’Malley’s attempt to rob Maryland taxpayers has once again back fired after his “windfall profits” tax bringing the tax on cigarettes to $2 a pack has had an unintended effect on their sales. Cigarette sales had dropped some 25% in the first half of the year. After instituting a new law as a stop gap method of seeing the money go elsewhere, the Maryland Legislature made it illegal to transport more then 2 packs over state lines.

They could have saved their time, had they looked at the surrounding states cigarette sales levels that have stayed the same. Maybe internet and black market sales are flourishing, but one thing for sure is that the Maryland Democrats aren’t getting it!

It’s sort of ironic how the claimed “income” from the taxes on cigarettes was never designated for smoking cessation programs, and how $522 million a year from the tobacco suit settlement, is used in the general slush fund, while very little is used for the intended purpose. If the slumping sales is any indication to the future, Maryland Politicians will have very little income on sales tax on tobacco products in 20 some years, but they will be VERY used to spending the $530 million a year they get now!

See my article from April 18, 2008 entitled “Taxes on Tobacco used for non smoking programs?”

1 comment:

Anonymous said...

Think he is trying to convince Marylander's it is time to move to another state where the 'leaders' just might consider the outcome of 'their laws'?