March 21, 2011:
King of Fees and Lord of Taxes

I wonder where those people went?

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You know the ones that I mean. They were around all during the summer and fall of last year.

You could not keep them off the radio or television. They kept saying, "Everyone knows a fee is a tax," "fees and taxes are one in the same," and "if it comes out of my pocket, it is a tax!" (Click here)

They made former Governor Robert Ehrlich the villain - and they viciously vilified him. They also inferred that Martin O'Malley would never, never raise your fees.

Because raising fees is just the same as raising taxes. And Martin O'Malley promised to NOT RAISE TAXES!

That seems like eons ago that Ehrlich was branded the "typical politician" and O'Malley was hailed as the savior from high fees.

But those people who were ubiquitous during the campaign haven't been seen or heard from since Election Day.

And Martin O'Malley - he has become the "typical politician" that those people in the campaign ads deplored.  In fact, just a few months after his "Fees are Taxes" media onslaught, O'Malley has become the King of Fees and Lord of Taxes.

In his budget, O'Malley has proposed hundreds of millions of dollars in new fees and taxes.

Do you think your health care costs are high? O'Malley has proposed a new tax of over $250 million as a hospital "assessment" that will be passed on to patients.

Increases to the gas tax, alcohol tax, cigarette tax, motor vehicle title and registration fees, vanity license plate fees and property tax fees are all part of the potential package being considered by the House of Delegates with O'Malley's consent.  O'Malley also proposed a brand new fee as a three-year surcharge on drivers convicted of certain moving violations.

So please forward this email to your friends and fellow taxpayers. Maybe someone somewhere will be able to find those people and we can bring them back. Yes - we need desperately to bring them back so that they can explain to Martin O'Malley that "Everyone knows a fee is a tax," "fees and taxes are one in the same," and "if it comes out of my pocket, it is a tax!"

For your full consideration, here is a condensed list of fees (which are the same as taxes) proposed by O'Malley and Democrat legislators to increase the tax burden of every Maryland citizen:

BUDGET RECONCILIATION & FINANCING ACT - O'MALLEY ADMINISTRATION

The BRFA of 2011 contains several fee increases where an assumption of additional special funds is accompanied by a general fund reduction.

• Payroll garnishment fee of $2 per payroll transaction; $50,000 contingent general fund reduction
• MHEC to charge fees to public and private institutions for academic program approvals; $253,208 contingent general fund reduction
• Nursing facility quality assessment increase from 4.0 to 5.5% of revenue; fee generates $35.1 million -- $11.8 million (matched with $11.8 million in federal funds) is used to hold nursing home providers harmless for that portion of the assessment based on revenue from serving Medicaid clients; $10.3 million (match with $10.3 million in federal funds) to support an estimated 1.6% reimbursement rate increase; and $13 million to offset a contingent general fund reduction
• Hospital assessment increases - to support Medicaid expansion (averted uncompensated care) and for general Medicaid operations, expected to generate $254 million in additional revenues; a $225 million special fund appropriation in Medicaid is contingent on the BRFA

The BRFA also institutes new and increased fees which are simply general fund revenues:

• Increase in the fee charged for the supervision of persons on probation (estimated by DLS to generate $2.8 million)
• Repealing IWIF's exemption from paying the premium tax (estimated by DLS to generate $1.9 million)
• Levying a charge on drivers with a certain number of points against their license (estimated by DLS to generate $3.8 million)

O'Malley fee increases as "revenue enhancements" already assumed in the O'Malley budget:

• Raising the cap on the user fees that are charged by the Health Services Cost Review Commission from $5.5 million to $7.0 million; the budget assumes an additional $0.4 million in spending in fiscal 2012
• Raising fees for court costs; the budget for the Criminal Injuries Compensation Fund increases by $2.0 million accordingly.

TRANPSORTATION TAXES/FEES

Gas Tax

·         10¢ per gallon increase

·         Increases state gasoline tax from 23.5¢ to 33.5¢ per gallon, 38% increase

·         Indexes tax to Consumer Price Index (CPI) in 2013

 Vehicle Registration Fee

·         Doubles current vehicle registration fees

·         Car/Truck vehicle registration increase from $128 bi-annually to $178.50

·         Motorcycle registration increase from $97 bi-annually to $132.00

Bad Driver Fees - O'MALLEY ADMINISTRATION

·         $1, 500 fine for driver convicted of driving 85mph or higher, twice in 2 yrs. This is in addition to the $1,080 already imposed for the same conviction.

·         $100 per point over 5 points, charged for three years

·         $500 additional charge per year for three years, for drunk driver convictions

Tolls - O'MALLEY ADMINISTRATION

·         MdTA has announced they will be raising fees on Maryland's bridges, highways and tunnels by the end of the summer.

SIN TAXES

Alcohol Tax

·         Tax on Beer: From .09 to $1.16 per gallon = 1,189% increase

·         Tax on Wine: From .40 to $2.96 per gallon = 640% increase

·         Tax on Spirits: From $1.50 to $10.03 per gallon = 569% increase

 Tobacco Tax

·         $1 increase on a pack of cigarettes from current tax of $2 to $3 per pack

·         $3 tax per cigar - a new tax

 Snack Tax

·         Expands State sales & use tax rate of 6% to snacks

·         Potato chips, Pretzels, Cheese Puffs, Corn Chips, Pork Rinds, Nuts & Seeds

 ENVIRONMENTAL TAXES/FEES

 Wind Tax - O'MALLEY ADMINISTRATION

·         Monthly increase to residential and commercial electric customers between $1.44 & $8.70

Electricity Tax

·         Charge per kilowatt for electricity consumption beyond 1000kwh

·         $2.99 additional charge for average consumption of 1,230 kwh per month

Bag Tax

·         5¢ per disposable carryout bag a store provides to customer

·         5¢ credit for each bag provided by the customer