Save My Maryland Job (MAHJ)

[greyl]

The Issue: Two job killing bills – HB 121 and SB 168 – in the Maryland State Legislature seek to raise taxes on the hospitality industry by an average of 790%.

What It Does: HB121/SB168 will increase state tax rates for alcoholic beverages sold in Maryland from $1.50 to $10.03 per gallon for distilled spirits, from 40 cents to $2.96 per gallon for wine, and from 9 cents to $1.16 per gallon for beer – an average increase of 790%.

What It Means: With Maryland’s unemployment rate at 7.4%, a 790% alcoholic beverage tax increase could mean a loss of 8,300 jobs.

More, and join: www.savemymdjob.com/

[elleng]

1. How? Bartenders?

'alcoholic beverage tax increase could mean a loss of 8,300 jobs.'

[greyl]

2. Sorry, I should have quoted this 4th paragraph at the link for you:

Maryland’s hospitality workers…the distributor drivers, men and women who work in bars, restaurants, hotels, and package stores are critical to our economic recovery. They would be hardest hit by this unfair tax. Our state’s hospitality industry contributes more than $4.55 billion in economic activity and employs 2.2% of the state's workforce.

More, and join: www.savemymdjob.com/

[elleng]

3. Thanks. Should have read it.

Hope they'll have the good sense to reduce it somewhat.

[dem3550]

10. +1

[madinmaryland]

4. According to the numbers you have provided this is how it would break down:

For a fifth of liquor it would add about $2.50; for a bottle of wine about $0.75; and for a six-pack of beer about $0.58.

It would also reinstate the millionaire's tax on Maryland's top earners and close a loophole that allows companies doing business in Maryland to avoid paying taxes on earnings held out of state.

..snip

That being said, I understand that the alcohol taxes have not changes in many, many years and may bring it in line with neighboring states.

[elleng]

5. Thanks for the analysis, mad.

[madinmaryland]

6. I think that while it could affect some jobs, the impact at best would be minimal

and the jobs lost in the beverage industry would easily be made up in the jobs created by the additional money coming into the state.

Interestingly, I think that the amount of booze consumed would probably not decrease much even with the higher taxes. People who want to drink WILL drink.

[greyl]

8. It gets complicated.

First readings of the Bills are here:
SENATE BILL 168 - pdf
http://mlis.state.md.us/2011rs/bills/hb/hb0121f.pdf">HOUSE BILL 121 - pdf

Description shared by both:

FOR the purpose of altering State tax rates for alcoholic beverages sold in Maryland; altering the distribution of the alcoholic beverage tax revenue; requiring the Comptroller to distribute a portion of the alcoholic beverage tax revenue to certain special funds to be used only for certain purposes; establishing the Developmental Disability Support Fund as a special fund to be used to support certain services for individuals with developmental disabilities; establishing the Addiction Treatment, Prevention, and Recovery Support Fund as a special fund to be used to support certain programs for the treatment and prevention of drug and alcohol addictions; establishing the Mental Health Care Fund as a special fund to be used to support certain programs for the treatment and prevention of mental illness; establishing the State Tobacco Use Prevention and Cessation Fund as a special fund to be used to support certain programs relating to tobacco use prevention and cessation; establishing the Maryland Medicaid Trust Fund as a special fund to be used to provide certain health care services to certain individuals; establishing the Health Care Personnel Training Fund as a special fund to be used to provide grants to certain training consortiums; and generally relating to the alcoholic beverage tax and the dedication of certain alcoholic beverage tax revenue for certain purposes.

Those look like pretty good uses of tax revenue, I must say.

Where did you find this info?:

It would also reinstate the millionaire's tax on Maryland's top earners and close a loophole that allows companies doing business in Maryland to avoid paying taxes on earnings held out of state.

I'm beginning to wonder if opposition to the Bills originated with wealthy owners of distributorships and restaurants, but is being sold to the low ones on the totem pole, like servers and bartenders, so they may pick up the fight.

[madinmaryland]

9. To address your last point, I have attached a list of the "Maryland Alliance for Hospitality Jobs"

Supporters who have created the website you are quoting from:

* Diageo
* MillerCoors
* Wine Institute
* Maryland Beer Wholesalers
* Maryland Restaurant Association
* Maryland Wineries Association
* Licensed Beverage Distributors of Maryland, Inc.
* Distilled Spirits Council of the United States
* Maryland State Licensed Beverage Association (MSLBA)

Hmmmm. I'm pretty sure that answers your last question.

As for the millionaire's tax and the loophole closure, I had read that yesterday. I can't find the source of it, but it has been bounced around in the past.

[CC]

7. What we do have is a very big,

strong, well funded alcohol beverage lobby that has a few bought and paid for reps in the state house. Having gone up against them and been there when people were threatened I doubt they need my help at all.