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