Debate on spending surrounds Md. gas tax proposal

WASHINGTON – Lawmakers have given business leaders the signal: expect a gas tax increase.

But where the money should go is up for debate.

A Maryland task force says the money should be funneled into the state’s Transportation Trust Fund to help smooth out the roadways, tend to transit, and shore up the state’s aging bridges.

The Coalition for Smarter Growth supports boosting the gas tax by as much as 15 cents, but only if the money is used toward new transit and not new highway projects.

There is also vocal opposition to the proposed tax. The Maryland’s Republican Party has created a Stop the Gas Tax website.

And at a recent meeting in Annapolis, business leaders told the Board of Revenue Estimates that any tax increases or new fees would drive a stake in the heart of the state’s fragile economic recovery.

A state panel has recommended raising the gas tax by 15 cents over three years.

WTOP’s Kate Ryan contributed to this report. Follow Kate and WTOP on Twitter.

(Copyright 2011 by WTOP. All Rights Reserved.)

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