Maryland Gov. Larry Hogan is proposing a major tax relief package for the upcoming legislative session, but much of what the governor is supporting has stalled in the General Assembly in recent years.
The Republican governor described his plan at a news conference Tuesday as the largest tax-relief package in the state’s history.
“We are announcing the largest tax cut package in state history, which will deliver more than $4.6 billion in much-needed relief for working families, small businesses and retirees,” Hogan said Tuesday.
He said it would deliver more than $4.6 billion in relief to Maryland families, small businesses and retirees. Maryland has an enormous budget surplus this year because of federal pandemic relief.
Hogan’s plan would eliminate state retirement taxes. Almost all of the proposed tax cuts, $4 billion, would be aimed at seniors.
“Together with our friends in the legislature we need to take bolder steps … eliminate every single penny of state retirement taxes in Maryland,” Hogan said.
Hogan made a similar proposal last year, which was rejected by the General Assembly.
A Bankrate study last year listed Maryland as the worst state in the nation in which to retire, mainly because of low scores for affordability.
Hogan said it’s important to keep seniors from moving away.
“It’s not just good for our economy; it’s also good for our quality of life if our seniors can have the peace of mind to stay here, where they spent their lives working and raising a family and where they contribute so much,” Hogan said.
Hogan has also proposed a tax cut plan of $650 million, which would extend last year’s earned income credit tax cuts for working families and he called for more tax relief for small businesses.
Maryland’s 90-day legislative session begins Wednesday.