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March 2, 2010

Marylanders WANT to pay $2.10 for a Miller Lite

The National Council on Alcoholism and Drug Dependence is touting a new poll that says Marylanders “strongly” support paying more per drink at the pub if the extra tax money goes to help the disabled or addicted.

The group is backing what they call a $0.10 increase per drink to the state’s alcohol tax (the tax would actually be levied at the wholesaler level). The group says the revenues would fund programs for people with disabilities.

They commissioned a poll that says that 80 percent would accept an alcohol tax increase if the new funds pay for programs for the developmentally disabled, 79 percent would support it in exchange for higher funding for mental health, 66 percent want health care expanded to more uninsured Marylanders and 65 percent want more resources for alcohol and drug addiction.

As a gentle warning to our cherished readers who are nodding their heads empathetically while thinking about the priorities enumerated above, please do remember these two words: FUND TRANSFER.

The FUND TRANSFER is a mechanism the General Assembly likes to use when they realize they don’t have enough money for something they really want. Faced with that problem they simply move money from Pot A (programs for the disabled, for example) to Pot B (pick your cause). This year’s $13 billion general fund budget includes $900 million worth of FUND TRANSFERS.

In short, even if a law is passed that said all revenues from an extra dime per drink should fund some cocktail of programs for the disabled, mentally ill, uninsured and developmentally disabled, a simple change could be made to redirect that money to fund an upgrade to the elevators in the Lowe House Office building.

Here is what wouldn’t change: Your ten cent tax on a beer.

Cheers.

Posted by Annie Linskey at 2:01 PM | | Comments (15)
Categories: General Assembly 2010
        

Comments

Just like the tobacco settlement went to the smokers?

When will these people STOP LYING TO US?

huh? Who the heck did they sample?

What kind of idiot charges $2.10 for a beer? Charge $2 or $3, but not $2.10 unless you want a $0.90 tip.

Seriously.

(From Annie: The imaginary $2.10 price tag is a reference to what a Miller Lite in Baltimore would cost if the dime per drink tax was added.)

Here here and cheers to the common sense of this post - every time I hear the premise behind raising x fee on y in order to boost funding for [insert civil cause here] by someone who supports it, I always bring up fund transfers and no one seems to know what I'm talking about.

Money from the state lottery was only supposed to go to education. Money from the toll tunnel was only supposed to pay for the toll tunnel until the toll tunnel was paid off. On and on it goes. I'd really like to see a breakdown of what and which revenues are being transferred from one promised end to another.

Annie,

The bottom line, why do patrons wish to pay an extra dime for a drink at a bar? Actually, the better question might be, who wants to carry around dimes? This tax either means patrons carry around dimes, the bar raises the drink price to $3 + tip, or the bar charges 10 cents less so the 10 cent tax makes the beer cost $2 + tip.

We know the latter won't happen, so the extra dime comes into play somehow.

The bottom line is that this means carrying around change, or subtracting 10 cents from the tip. (Or some fool can tip $1.90 for someone else to pour a $2.10 beer from the tap).

Will the Sun go after Owemalley for his transfer of funds like they did for Ehrlich?

There is a hearing today in Annapolis. It is on HB151 and it companion SB141. It will TRANSFER over ONE HUNDRED MILLION DOLLARS from the Transportation Trust Fund, and all the other "TRUST" funds hiding in the budget to the GENERAL FUND!
Does anyone truly believe that the funds going into this fund will not see the same fate?
Do you really believe the legislooters will spend all this money on the bay?
Just as they are spending ALL the money in the Transportation Trust Fund are being spent on highways?
Do you think all that HUNDRED MILLION will be paid back to these raided funds WITHOUT MASSIVE TAX INCREASES AGAIN?
This is just another SLUSH fund for these thieves

Tax, tax, tax, tax, call it what you will, but every red cent taken from a citizen, by whatever means for whatever purpose is a TAX. Our legislators are nothing but liars and whores who cannot stop the spending.

That money will never go to anything but the general fund (Fund Transfer). Also, I wonder if the poll results would change if they said 10 cents a drink translates to over $2 per bottle when it comes to something like distilled spirits. That means, businesses will have to cut somewhere -- and that affects employees.

This tax is a joke, the state is so deep in the hole, this thing would be a very tiny drop in the bucket. It could cost jobsd in the bar and restaurant industry. You all have it right, the chances of this money EVER going to the specified cdause is slim to none.

You know, this is really a jobs bill. Just think of all the new positions that will open up, no experience necessaary, high school diploma optional, in the smuggling and bootlegging industries.

In theory I think a tax on alcohol that goes expressly to helping alcoholics is a great idea. I'm also (in theory) a big proponent in taxing cigarettes to help smokers quit and/or fund healthcare due to smoking that taxpayers are currently funding (e.g. Medicare) Same principle goes for junk food and the rising obesity epidemic in this country. But yes, fund transfer is what prevents me from supporting any of these ideas in anything but theory.

Here is a partial list of money being STOLEN from "TRUST" funds to pay for the out of control spending addiction of the MOB!

# Transportation Trust Fund (TTF) - $126.9 million – This is the primary funding source for new roads, bridge repair and infrastructure. If we continue stealing from this fund, there is no doubt the liberals will want to replenish it with a huge gas tax hike.
# Program Open Space (POS) - $131.0 million – Our property transfer taxes finance this land-buying special fund. To add insult to injury, Gov. O’Malley has proposed backfilling his raid of POS with loans we will have to pay back on top of interest
# University System of Maryland(USM) - $51.7 million – Gov. O’Malley broke his campaign promise by raising tuition and now wants to use the fund increases to pay for his general budget. So much for lofty campaign rhetoric!
# Injured Workers Insurance Fund (IWIF) – $26.5 million – The legality of this move is still in question because IWIF is not a state fund. IWIF rate payers have already seen a fee hike within the last year. This has the potential to rise again due to the state raiding the $300 million fund and could hinder an economic come back in Maryland.
# Vehicle Theft Prevention Fund (MVTP) - $1.8 million – This fund is charged with assisting in the prevention and deterrence of private passenger and commercial motor vehicle theft and related crime, including vandalism and theft of property from vehicles in the state.
# Board of Physicians Fund (MBP) - $1.5 million – When doctors apply and re-apply for their license, they make payments to this advisory and regulatory board. Unfortunately the Governor has decided to raid the fund which roots out fraud and helps clean up the medical industry

No new deals period!
When does the overtaxing of the citizens of Maryland end?
As the 4th highest taxed state in the nation when is enough enough?

OK, first, the alcohol excise tax hasn't been increased in decades and Maryland has one of the lowest in the nation. There is a little room here for an increase in the excise tax to bolster state funding.

Second, it seems very common for the right to shriek, not about what IS happening, but what they imagine WILL happen in the future. If you want to oppose transfers to the general fund, oppose THEM, not an insignificant and past-due adjustment to the alcohol excise tax.

I am opposed to any taxes on alcohol I don't care where it goes to or who it "benefits" , parading all of these people around to gather public sympathy to support a tax increase is just wrong and only exploits those who are truly disabled! they are being used to further the personal agenda of those who wish to deceptively raise taxes

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About the bloggers
Annie Linskey covers state politics and government for The Baltimore Sun. Previously, as a City Hall reporter, she wrote about the corruption trial of Mayor Sheila Dixon and kept a close eye on city spending. Originally from Connecticut, Annie has also lived in Phnom Penh, Cambodia, where she reported on war crimes tribunals and landmines. She lives in Canton.

John Fritze has covered politics and government at the local, state and federal levels for more than a decade and is now The Baltimore Sun’s Washington correspondent. He previously wrote about Congress for USA TODAY, where he led coverage of the health care overhaul debate and the 2010 election. A native of Albany, N.Y., he currently lives in Montgomery County.

Julie Scharper covers City Hall and Baltimore politics. A native of Baltimore County, she graduated from The Johns Hopkins University in 2001 and spent two years teaching in Honduras before joining The Baltimore Sun. She has followed the Amish community of Nickel Mines, Pa., in the year after a schoolhouse massacre, reported on courts and crime in Anne Arundel County, and chronicled the unique personalities and places of Baltimore City and its surrounding counties.
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