ANNAPOLIS, Md. — Maryland House and Senate leaders announced three bills aimed at saving residents from a projected tax hit of nearly $1 billion — a result of the congressional vote to cut federal taxes.
Senate President Mike Miller and House Speaker Mike Busch were joined by fellow lawmakers — all Democrats — at Tuesday’s announcement. The bills, they said, would protect the 92 percent of Marylanders who can expect to see their tax bills go up as a result of the federal changes.
One bill would allow Marylanders to take a personal exemption on their state taxes. It’s the same exemption that was eliminated from federal taxes under the congressional action.
“If you’re one person, you claim one personal exemption,” Miller explained. “Or, if you’re a family of seven, you have five children, husband and wife, you get seven personal exemptions.”
Miller asked reporters, “Is there possibly a fairer way to return money to the people of the state of Maryland?”
Another bill would “uncouple” state law from federal law on the inheritance tax. Under this plan, Maryland could tax inheritances of $5 million or more. If left unchanged, the revised federal tax code limits the state to taxing inheritances of $11.2 million or greater.
“We’re going to flesh this out over the next 85 days to make sure that Marylanders are protected in this system that’s been put upon them by the federal government,” Busch said.
A third bill would deal with charitable deductions.
Asked about the plans by Democrats, Republican Gov. Larry Hogan told reporters, “We’re thrilled that they’re talking about this.” It’s an indication, he said, that Democrats were “on board” with his plans to protect taxpayers.
Hogan referred to his statement last month that he’d come up with a plan to “hold Marylanders harmless” from the impact of the changes in the federal tax code. He was asked about the details of his plan at a budget briefing Tuesday. The governor didn’t offer any details, saying, “We’re going to announce that sometime very soon.”
The bottom line, said Hogan, was that Democrats share his concern that residents should be protected from adverse effects of the change in the federal tax code.
“We agree,” he said, “and I’m sure we’ll figure out a way to work the details out.”
The lawmakers are in the second week of their 90-day General Assembly session.
