After months of repeating that he had a high bar for tax increases of any kind, Gov. Wes Moore on Wednesday outlined a plan for sweeping “tax reform” to generate hundreds of millions of dollars for next year’s budget and help close a nearly $3 billion gap. While 82% of taxpayers will either see a cut or no change to their income tax rate, the highest 18% of earners will see an increase. The average tax cut would be about $173, with low-income families saving up to $300.
Our position: President & CEO Mary Kane says that parts of the governor’s plan are shortsighted and will go against his stated goal of making the state more attractive for businesses. The administration has proposed lowering the corporate tax rate by adopting combined reporting — in which taxes are reported as if the affiliated taxpayers conducted business as a single legal entity. Kane argued that combined reporting would not be a stable revenue source for the state and is a policy that would make Maryland less appealing to businesses.
