Report: O'Malley gas tax hike hits poorest the hardest

The Maryland Public Policy Institute, which has no fondness for taxes generally, does not like Gov.Martin O'Malley's proposed gas-tax increase. Fuel taxes are well-known as regressive, but the institute says a Maryland gas-tax increase of 15 cents (the Sun has estimated it would be 18 cents are current gas prices) would hit the poorest of the poor especially hard. Say Wendell Cox and Ronald Utt:

"Specifically, this report estimates that after the proposed tax increase, the lowest-income brackets would pay a share of their incomes more than seven times greater than the share paid by the wealthier households. As a result, the lower-income households likely will choose to decrease their driving to a much greater extent than would higher- income households, an outcome that has important implications for job access at a time when gas prices are also very high."

Read the whole report here.

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