Maryland residents will experience another crushing increase in cost of gasoline at the pump this summer drive season across Maryland. This is all courtesy of a Martin O’Malley-era law passed by Maryland Democrats in Annapolis that insanely ties gasoline tax rate increases to the rate of inflation. Energy costs themselves are a main driver of inflation. Gasoline taxes are a highly regressive form of taxation that crush lower-income workers who are simply trying to drive to a job to earn income.
Driving the news: Maryland Democrats have had multiple opportunities to repeal or fix this inflation-tied gasoline tax revenue mechanism for several sessions in Annapolis but have punted or voted down a fix every single time. Every single member of the Montgomery County State House Delegation voted against an amendment that would have prevented the gas tax increase as of July 1, 2023.
Why it matters: Maryland’s regressive taxes are hurting middle income and lower income families across the state. Maryland’s gasoline tax is already about $0.43 cents per gallon at a time when gasoline prices are about $3.68 per gallon on average in Montgomery County, MD as of late April, 2023. A year prior, AAA reports that Maryland’s average cost per gallon were around $4.05.
“Residents across the state are spending 20 percent of their monthly income at the pump, according to the state Comptroller’s office.” per this report at wypr.org.
Catch up quick: Maryland’s gasoline tax is already one of the highest in the nation. It is now heading to potentially #1 or #2 in the nation with the coming increase July 1, 2023. Last year’s increase was an astounding 19.4%, from 36 cents a gallon to about 43 cents. What does the next auto-tax hike hold in store?
How it works: Maryland – and specifically Montgomery County – Democrats are trying to distract the public from the very real consequence of their automatic tax hike, which will regressively hurt the middle class in Maryland. They’ll blame Russia, energy companies and more but the fact remains that this automatic tax hike is strictly a result of their votes and legislation.
What’s new: There appears to be some actual push-back from Maryland Republicans in the statehouse in Annapolis on this regressive tax, for once. Whether or not they can make more noise about this damaging policy and its ramifications remains to be seen. At the same time Maryland Democrats are taxing gasoline at record levels, they are throwing millions in “EV” car tax credits at higher income people in the state.
