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Maryland planning more stealth tax hikes on poor?

In a socially-acceptable way, of course: ie, via another hike in the tax on tobacco. The “Maryland Citizens’ Health Initiative” – a name whose hint of subtle menace should make small-government types involuntarily shiver – looking to raise it by a buck a pack, because… well, pretty much because they want people to quit smoking, and taxing it through the ceiling is supposed to accomplish that. And it might… except for one minor little detail. You see, Maryland’s state sales tax on tobacco is currently two dollars; over in Virginia it’s thirty cents.

You do the math.

I mean, I know what the message is supposed to be here:

Continuing in his efforts to aggressively crackdown on cigarette smuggling tobacco tax evasion tactics, Comptroller Peter Franchot announced today that agents from his Field Enforcement Division confiscated more than 17,000 packs of the contraband cigarettes. In addition to seizing the approximately $103,000 worth of contraband cigarettes, Comptroller’s agents arrested four people in four separate cases within less than one week’s time.

…but the message that comes from reading this article is It’s really easy to smuggle cigarettes over the Maryland state border. Not that people should, because it’s illegal – but a buck-seventy differential is apparently one heck of an incentive for filling your car with Marlboro Lights and driving north.

For that matter, seventeen bucks per carton is probably enough of an incentive for people to just buy their smokes at handy Virginia locations. Not to mention other groceries, which means even less revenue for Maryland. And if you think that people in poor financial circumstances who are physically addicted to a highly addictive drug that does not impair their ability to reason cannot make this kind of elementary financial decision… congratulations! You have all the necessary qualifications one needs to be a Democratic member of the Maryland state legislature.

Moe Lane (crosspost)

PS: Full disclosure: I used to smoke, and while I don’t have the usual disgusted seething hatred for smokers that is stereotypical for ex-smokers I still think people should quit. But I’m also a Maryland taxpayer, and I have a certain reluctance to see damfool notions passed that will subtly degrade the existing tax base, particularly if those damfool notions are being passed in the name of social engineering. I really wish that politicians would learn to do sums: the fiscal illiteracy ensconced in the threatened Maryland Amazon tax is quite bad enough…

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COMMENTS

  • cam1

    what happens in Maryland or to cigarette smokers?

  • ceili_dancer

    You might see that Moe might have some skin in this game. Besides, it may or may not be your state, but if some state raises taxes in a new or unique way and other states see that they can get away with it? Don’t hold your breath waiting for your state to try it out on you. See the previously mentioned Amazon tax.

  • jaydickb

    I welcome the additional revenue from Maryland residents. In addition, did you Marylanders know that gasoline taxes in Virginia are lower than Maryland? Come to Virginia to fill up at lower prices; we could use more revenue from that source as well.

    Better yet, just move from Maryland to Virginia. I did.

  • jtlfromfredmd

    State! This state is sinking fast. Don’t forget that just this past June they instituted the alcohol tax – 3% on any alcoholic beverage whether from a liquor store or at a restaurant. It’s a disgusting comment on a once free state.

  • septembergurl

    keep piling on the taxes in Maryland. Thee are consumption taxes that hit poor people disproportionately. A few months ago he raised the liquor tax from 6% to 9%. This was accompanied by a preposterous series of claims from a tame academic, that the measure would raise $x , that healthcare costs would go down as people would drink less, and that some number of people — I think it was 13 or 14 — would not be killed as a result of drunk driving.

    Needless to say the measure has not brought in the predicted amount of revenue, nor will the other claims be fulfilled. O’Malley has also raised the fees for registration and title for car owners (as I found out when I moved to Maryland this summer).

    Keep in mind when watching the debate where Herb Cain will be extolling his 999 plan that consumption taxes are regressive and almost impossible to repeal at the state level, though they are unpopular. You would have to replace the revenue, dismantle the bureaucracy that regulates the tax, etc. In Taxachusetts there is an excise tax on new cars (in addition to the sales tax) that is about $600 the first year, then every successive year you pay less until…..well, forever. This is unpopular and has been on ballot initiatives for repeal, unsuccessfully. It was originally to pay for some shovel-ready project — a road or a bridge or the Big Dig long since concluded but the tax does not go away. In Virginia a Rep Governor (I think Gilmore) ran on a pledge to repeal the VA car tax but was not able to do it.

    How much control would citizens have over these taxes at the Federal level?

  • http://moelane.com/ Moe Lane

    Thank you ever so much, Congressman Barney [expletive deleted] Frank.

  • Doc Holliday

    anytime someone leaves tyranny for freedom, it is a good thing.

  • voltron

    Why not?