Americans for Tax Reform urges the Maryland House of Delegates to vote against SB 994 – an unprecedented 50 percent hike in the sales tax on alcohol.
The proposed tax hike would up Maryland’s current 6 percent tax to 9 percent. Democrats in the state Senate planned for the tax hike to occur over three years with a 1 percent hike each year.
Revenues generated from the 1 percent hike in the first year would overwhelmingly go to off-set modest cuts made to education aid in Prince George’s County, Allegany County, Garrett County, and to pay for retired teachers’ healthcare in Baltimore. In the first year, alcohol taxes would be raised by an estimated $30 million – by the third the increase could exceed $85 million.
“Vice” taxes do not work. Last year’s cigarette tax hike in Washington, D.C. actually caused revenues to decrease by 20 percent! Additionally, these taxes hurt small business owners and the poor the most – a new tax hike on alcohol will only further Maryland’s economic stagnation.
ATR encourages you to write your Maryland House delegate and tell them to vote no on SB 994. You can write to your delegate here: