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Clearing the Browser Tabs – Oh Maryland, Stupid Maryland Thursday Edition Posted: 15 Sep 2011 03:10 AM PDT I don’t throw the phrase “batspit insane” around lightly, but it’s appropriate to describe the Maryland legislators who want to add a new 15.5 cent gasoline tax on top of its already-hefty excise tax. What shoves the idea into crazypants land is that the 15.5 cent tax is only one option. The other is a flat 5-percent tax which would, at the current average price per gallon of $3.549, jack up the price 17.75 cents. Maryland is already the sixth most expensive state in which to live and loaded the 12th highest tax burden on her residents. A huge tax hike will make the state’s precarious financial situation much worse. Yes, I know that the legislature estimates the new tax will bring in eleventy-one bazillion dollars, but it won’t. Remember that government fiscal projections never take ordinary and predictable human behavior into account. That is why states always find themselves in trouble when they raise cigarette taxes, spend the money they project they will get on expensive new school gewgaws, and learn a few months later that people either smoked less or nipped over to a state with a lower cigarette tax for their nicotine fix. I’m sure my home state will make a little bit more money from a new gas tax. However, people will adjust their behaviors. They’ll drive less; carpool more; fill up in Virginia, Delaware, or Pennsylvania; buy more economical vehicles; or, worst for the state, leave entirely. Like the millionaires who fled the state instead of coughing up a special rich Person Punishment Tax, Marylanders will simply find ways around the new tax. But don’t expect the progressives in the Maryland legislature to expect human beings to act like human beings. They have economic models that say otherwise. And now, links!
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