A coalition of more than two dozen groups and progressive lawmakers are hoping to leverage looming state fiscal challenges to pass long-desired tax reforms. Advocates describe the as-yet-to-be-introduced omnibus bill as covering roughly a half-dozen policies that have been proposed in separate bills as recently as two years ago. The legislation would raise $1.6 billion annually — once fully phased in — for the state’s general fund, potentially offsetting billions in projected deficits and paying for tax credits for some low-income earners.
Proposed changes: The group’s proposed changes include a 7 percent tax increase on people whose income is $1 million or more a year; reversing a 2014 estate tax exemption and reinstating a $2 million exemption; adding a 1 percent surcharge on capital gains; as well as “significantly increasing” the number of state tax auditors. The bill would also include a combined reporting tax based on corporate earnings worldwide, rather than just in the U.S. If passed, Maryland would become the first state in the country to adopt such a standard.
