In order to pay for upcoming structural deficits and increased spending in the Maryland operating and capital budgets, tax and fee increases have been informally discussed among some members of the General Assembly. One such potential tax proposal is to increase the Maryland Sales and Use Tax.
In the ongoing discourse over whether to increase Maryland’s sales tax, a candid revelation from a Western Shore delegate about a decade ago offers a prescient glimpse into the prevailing sentiments within the state’s political landscape. The delegate’s straightforward admission, “Clay, if you think the urban delegations cares about Kent County, I’m going to tell you ‘No’ “, serves as a sobering reminder of the historical disparities between the Western and Eastern Shores. This revelation, shared with me approximately a decade ago, sheds light on the perennial struggle faced by the Eastern Shore in securing fair and equitable treatment in the halls of Annapolis.
As I reflected on this insight in an article I wrote for Center Maryland in December 2014 (“There’s a Blue Dog Room in Maryland’s Third Party”), the stark reality emerged that the Eastern Shore, with its old-style conservative Democrats and Republicans, finds itself vastly outnumbered by the progressive Western Shore Democrats who wield considerable influence in the state’s political landscape. The sentiment expressed by the Western Shore delegate encapsulates the prevailing attitude in Annapolis—one where the concerns of the Eastern Shore, particularly those related to the impact of undifferentiated tax policies on local businesses, are met with a dismissive “who cares” attitude from many progressive leaders.
It is against this backdrop that an increase in Maryland’s sales tax takes on a more sinister hue. The Eastern Shore, already grappling with a political climate that marginalizes its concerns, now faces the prospect of an additional economic hurdle in the form of a heightened sales tax. The notion that Eastern Shore residents would willingly pay a 6 ½ % to 7% premium to make purchases within Maryland, especially when the neighboring state of Delaware beckons with a tax-free haven, is a testament to the shortsightedness of such a tax policy.
To argue that Marylanders will voluntarily pay the “use tax” for their Delaware purchases that are imported into this state is laughable. The complexities of cross-border economic interactions, particularly with a state boasting a tax-free haven, belie the simplistic notion that such an increased Maryland sales tax adequately compensates for the financial burden placed on Maryland’s Eastern Shore residents.
The juxtaposition of economic trajectories between Middletown, Delaware, and Kent County, Maryland, further accentuates the potential consequences of a sales tax increase. While Middletown, Delaware experiences a surge in economic growth and prosperity, neighboring Kent County, Maryland languishes in stagnation. This stark divergence prompts a poignant question: Does anyone in Annapolis wonder why neighboring jurisdictions can experience such disparate economic outcomes when the areas share a geographical border?
The Eastern Shore’s economic interdependence with Delaware is a reality that cannot be ignored. As policymakers deliberate on tax policies, they must heed the warning signs from the past and recognize the consequences of an unjust burden on the Eastern Shore. A myopic focus on urban priorities at the expense of rural communities threatens the delicate balance of Maryland’s economic ecosystem.
In conclusion, a sales tax increase, when viewed through the lens of historical neglect and dismissive attitudes towards the Eastern Shore, reveals itself as a potentially divisive and detrimental policy. Annapolis must reckon with the reality that fair and equitable treatment of all Maryland residents, irrespective of their geographic location, is essential for fostering a thriving and united state. Only through thoughtful consideration and inclusive policymaking can Maryland hope to bridge the divide and create an environment where the economic well-being of all its residents is safeguarded.
Clayton Mitchell is an attorney who resides on the Eastern Shore
jeff morton says
Haven’t figured out yet how MD went from a $5 billion surplus with the old Administration to being in a deficit in about a day with the new administration. I can’t say I am surprised though.
Debbie Safchuck says
Why is MD taxed so high? Where is all the money going from the casinos? We should have the best education system in the country. We don’t though. It seems this money is finding its way into people’s pockets. We should be like Delaware. We have more gambling than they do and we pay some of the highest taxes. If it were up to me I would move to DE but my husband doesn’t want to move. Shame on MD
Eric Ploeg says
Debbie,
We’re taxed so much because we have a Soros sponsored governor with a single party Democratic legislature which for some is the “perfect storm”. Our state government is swelling with the addition of new departments, offices, committees, commissions and agencies all staffed with government (voters) employees. This governor speaks with grandiloquence, impressing people using clever acronyms to distract from his spending. Lots of virtuous titled special interests and Moore’s “nonprofit” pals are all being well funded with our state money. In less than 1 year, Maryland’s handsome budget surplus is now in deep deficit territory. Yet, there’s no benefit to ordinary Maryland citizens. How can that be?
Rather than reining in out of control spending, this governor and legislature are busy working to increase state revenues through expanding and adding new taxes and fees. Real estate assessments just increased throughout the state meaning significantly more revenue. We’ve got big gambling taxes rolling in. The legal cannabis tax administered thru the newly established “Office of Social Equity” is already proposed to be increased from 9% to 14% – with all revenues dedicated to “over-policed” previously impacted communities. There’s the “paint tax”?, increased tolls, the newest idea – a delivery/package fee for EACH item (food deliveries too) delivered to your door. What’s next? Imagine how Maryland might benefit if these elected officials dedicated half their time to proper budgeting and cutting unnecessary spending.
Unfortunately it’s likely that the state funding that’s normally provided to localities will be cut due to lack of funds since this administration’s priority is funding THEIR preferred programs. This will force localities to increase their taxes and fees just to maintain basic services.
I’m afraid many Marylanders aren’t aware of what’s going on….yet. Wait until next year when they see the bill! I agree that something has to change because we’re not heading in the right direction.
Matt LaMotte says
Residents of the Shore periodically raise the spectre of secession. I wonder…
Kathleen Carroll says
With the price of gasoline, many people on the Eastern Shore would not find it economical to drive to Delaware to save a few cents on the sales tax.
dan watson says
I am amused. Until about 1964 or so, the makeup of the Maryland Senate was based not on population (“one man, one vote”), but each County had (I think) two Senators, irrespective of population. Ha! No complaints from the Shore back then.
There are a lot of problems with democracy, among which is being on the short side.
D
Dale Maxson says
Md received a very substantial tax revenue increase without raising tax rates when the federal standard deduction was double by President Trump. This was not publicized much but MD in my opinion stole a large portion of the reduced Federal taxes Trump intended for middle to lower income earners. Shame on the MD legislators for squandering this ANNUAL tax increase. Stop raising taxes at every level. Just google MD is in a class by itself among all states when you compare income tax, sales tax, estate tax, inheritance tax, gasoline tax, local income tax. I love this state but our politicians do not properly allocate the funds they receive in my opinion. No more taxes just don’t waste all you collect. Act like it is your mother’s money and spend wisely or not at all. I enjoy life on both shores of MD but the Eastern Shore should be against an increase in SALESTAX.
Clemis A. Kaikis says
Great education piece Clay your dad would be so proud of you.
M Sparks says
Agreed Clemis! Well done Clay!