Posted on 06/07/2011 8:24:27 PM PDT by Tolerance Sucks Rocks
Did you enjoy the gridlock last week? Summer traffic trying to reach the beach can lead to some pretty hairy back-ups. Pretty soon, you'll be able to pay even more for the privilege of sitting in traffic.
The O'Malley administration is socializing a plan to hike the gas tax between 42 percent and 100 percent, and raise the round-trip tolls on the Harbor Tunnel, Key Bridge and Bay Bridge to $8 - regressive taxes on hard-working Maryland families.
There have been news stories about crumbling infrastructure, an empty Trust Fund and the need to pay bond holders. This PR campaign is designed to brace the public for the worst so they're grateful when they get screwed a little less. It would be unnecessary, however, if the governor would stop raiding the Transportation Trust Fund - aka, the Transportation "Slush Fund."
There are (were) two gigantic pots of money under control of Maryland's Transportation Secretary: the Transportation Trust Fund and the Maryland Transportation Authority. The secretary directly oversees the trust fund and is chairwoman of the Transportation Authority Board. The trust fund is filled by various fees and taxes while the authority's coffers are filled by toll money, and an $18 annual fee for E-ZPass.
The government issues bonds to raise money for capital projects, such as roads, bridges, tunnels, light rail, etc. Technically, authority bonds are not guaranteed by the full faith and credit of the state. However, as we saw with Fannie Mae, the government will not default on that debt. We will pay back those bond holders, with interest, through higher taxes and tolls.
The bond market doesn't care if you can't afford a gallon of gas … or milk. It only cares about maintaining the value of bonds, and our politicians are slaves to the bond market. They'll do anything to get a AA rating from Standard & Poor's, even if it means raising tolls to $8. A higher bond rating means a lower cost of borrowing. And they want to borrow and spend.
The trust fund gets its money from such sources as vehicle titling fees, registration and MVA fees, corporate taxes, sales tax … all of which have been hiked. Now it's time to jack the gas tax.
Maryland has a 23.5 cent per gallon excise tax on gas, on top of an 18.4 cent federal excise tax. One proposal would raise the state tax to 33.5 cents per gallon - a 42 percent increase - and index it for inflation so it automatically rises, without an inconvenient vote. Another proposal is to apply the 6 percent sales tax on top, so a $4 gallon of gas will be an extra 24 cents per gallon - a 100 percent increase.
Even that would not be enough, however. The Blue Ribbon Commission on Transportation Funding called for the state to raise an extra $800 million for the trust fund every year. That is impossible because the governor and legislature treat the trust fund like a piggy bank, taking the money and leaving IOUs. They took $100 million this year from the "trust" fund - nearly $700 million since 2007 - to increase spending on priorities like in-state tuition for illegal immigrants, the governor's overseas junkets, etc.
The governor and legislative leaders seem to be betting the public will be distracted and vent their rage for rising gas prices and tolls at the convenient bogeymen: Big oil and Wall Street, instead of the politicians who diverted their transportation funds for other purposes.
Short-sighted politicians are kicking the can on our debt problem and banking projected toll and tax revenue as if the economy is static. Higher taxes and tolls will slow economic activity, especially for businesses that depend on bridge crossings, and reduce employment and revenue.
As you crawl toward the Harbor Tunnel, Key Bridge or Bay Bridge, burning $4.25 gas and waiting to pay your $8 round-trip toll, ask yourself: Am I really getting what I am supposedly paying for?
To comment on the toll increases go to http://mdta.maryland.gov/
Maryland “Freak State” PING!
One wouldlove to thibnk you are exaggerating, but the history of the world tells us that the state is by nature a robber. Democracy means only that the people get to choose who steals from them, and who can get some of them to pass some of the loot our way, in return for our vote.
One more straw ping
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