There is a basic rule in microeconomics called the elasticity of price.  As the price increases, demand will decrease.  So it comes as no surprise to a sane human being not suffering from craniorectal inversion that increasing the tax on cigarettes by $1 a pack would cause a decrease in sales.

The Baltimore Business Journal covers this man-bites-dog story here, featuring Maryland Line's own "Fill Er Up" convenience store, hippie joint and gas station.

Of course, the incredible irony here is that increased cigarette taxes were part of the plan to cover more uninsured Marylanders -- especially the children.  Now, because of declining sales, that money will not be available.

Whoops.

But that is not the worst part.  A lot of those stores -- primarily convenience stores -- depend up on cigarette and tobacco sales to drive sales of other higher-margin products like soda, milk, snacks, etc.  Guess what?  If people aren't coming in for their Marlboros, they also aren't coming in for the other stuff.  That means the state takes two other big hits.

Sales tax and corporate tax.

You think that $300 million decline in tax revenue over 16 months was big, wait until the trickle down effect of the cigarette tax works its magic.

Doesn't anyone in Annapolis study economics anymore?  You can't get blood from a stone, even a Blarney Stone.

But fear not.  I will continue to smoke my cigars -- the only item I still purchase in Maryland -- for the children.

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The Wild Turkey Phone was ringing off the hook this morning, as the Grim Reaper was in Annapolis knocking on O'Guvnah's door.  It turns out there was a Maryland Department of Transportation pre-bid meeting on a massive technology project today (as the Anti-Computer Services Sales Tax Rally was going on).

And guess who showed up?  Representatives from Pennsylvania's Department of Economic Development, inviting all those companies attending to come on up to PA for a meeting on how they could relocate to Pennsylvania -- because Pennsylvania is pro-business, pro-technology, and low tax.

That's right.  Pennsylvania set representatives of their Department of Economic Development to a Maryland STATE GOVERNMENT pre-bid meeting to recruit companies to move to Pennsylvania.

Well played, Pennsylvania.  Screw you, O'Guvnah.

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The numbers are rolling in today, and there is VERY BAD news for O'Guvnah and his Dark Servants in Soddom on the Severn.  It is starting to look like the dramatic tax increases from the SOCIALIST SESSION back in November have backfired in a HUGE way.

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O'Guvnah has announced that he somehow found $33.6 million to purchase 3 brand-spanking new Dauphin helicopters to replace some aging craft in the state police fleet.  It sounds so nice, O'Guvnah working hard to keep our state trauma system on the cutting edge with new equipment so that we can fly seriously injured victims all around the state to get them the best care possible.

It's also a questionable expenditure designed not to serve the citizens of Maryland, but to prop up O'Guvnah's sinking poll numbers.  Standing in front of a State Police Dauphin makes one hell of a photo opp, as the Calvert Street Communist Party Newsletter proved on Friday.

Can you say "staged event" boys and girls?

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I just finished my taxes this weekend, and so my annual hatred of the Internal Revenue Code and the Internal Revenue Service is at a peak.  I’ve been pondering a “what if” scenario – “If I could, what kind of tax program would I design?”

And so here it is.

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Since Maryland is now in the throes of its statewide ban on smoking in any workplace, including bars, I think it is right and proper to disclose how I will oppose this move:

I am going to screw the little guy.  That's right.  Restaraunt owners didn't want to fight for their smoking patrons, so I will not fight for them.  From now on, I will not purchase alcohol from you.  And mind you-- I am not some beer guzzling redneck.  I am a top-shelf alcohol drinker.  No more Glenlivet or Wild Turkey or Maker's Mark on the rocks anymore.  No Belvedere straight up.  I won't buy it.  Which means your check amount just dropped precipitously, and with it, the tip for your bar staff and wait staff.

If I can't enjoy a nice cigar with my alcohol, I won't drink at all.  I've got a pretty good selection here at the house-- including some of the Eastern Shore's finest.  I don't need to spend my money where I am not welcome.

You can take your alcohol and shove it.

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Today's lesson on Day 27: O'Misery in O'Maryland is on Public Service Commission Patronage.  What is patronage?  for those of you who can't remember back to your high school years, or didn't pay attention, or didn't bother to go, patronage is the purely political act of giving government jobs to your political supporters.

It seems that as people read more and more in Fiscal 2009 Budget (that is the budget year that begins on July 1, 2008), we find more and more political patronage from the hands of O'Guvnah.

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I don't have a long post today, because I had a lot of work to do.

I just want to you consider one thing:  but for the increase in the gas tax, the average price of gas in Maryland would be below $3 now.

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The Clinton's had "Don't Stop... Thinking About Tomorrow". O'Guvnah -- who fashions himself the next version of Bubba -- has his own little Fleetwood Mac song.  Can you guess which one?

No, it's not Tusk. Not hardly.  That might make him an Elephant.  And it's not The Chain.  Or Rhiannon (although she is an Irish witch... hmmm..)  Gold Dust Woman? (now who would THAT be?)

Hmm... there is really only one choice...

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Did you know that O'Guvnah was a HUGE Beatle's fan?  It turns out that he LOVES the Beatles.  It turns out that the Beatles love him, too. Well, at least George Harrison and John Lennon, do.  Back in the days when J. Millard Tawes ruled the roost in Soddom on the Severn, John and George were composing their one and only love song to the future O'Guvnah:

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