Lawmakers unveil revenue bills aimed at making the state’s tax system more equitable

Lawmakers unveil revenue bills aimed at making the state’s tax system more equitable

Image by Steve Buissinne from Pixabay

@BryanRenbaum

Several of Maryland’s most progressive lawmakers introduced a series of revenue bills on Friday that they say would provide the state an estimated $1.4 billion annually and make its tax system more equitable.

Many of the bills have been introduced in previous legislative sessions. The proposals include: a 1% surtax on income from capital gains, elimination of “pass-through” tax loopholes used by many businesses, lowering the threshold for when the estate tax kicks in, requiring multi-state corporations to pay more in Maryland taxes, and a fundamental restructuring of income tax brackets and rates.

“Maryland right now has an upside down tax code. The wealthiest 1% of Marylanders pay a smaller share of their income in taxes than anyone else. And that’s just really unfair to the rest of us 99%,” Del. Julie Palakovich Carr (D-Montgomery) said in an online news conference sponsored by the Maryland Fair Funding Coalition.

Palakovich Carr is the sponsor of both the capital gains and “pass-through” proposals. She specifically emphasized the importance of the former proposal.

“This legislation attempts to close that gap and I think it’s especially needed in a year like this one where the wealthiest Americans have added $1 trillion in assets and income through the stock market.”

Del. Jheanelle Wilkins (D-Montgomery) made similar remarks about her estate tax proposal.

“Part of a just recovery and having the resources in our state to invest in our future is also making sure that wealthy residents pay their fair share…This bill is about making sure that wealthy residents who pass on their estates with assets-that we are getting our fair share as a state. Currently, $5 million is excluded from state taxes when it comes to our estate tax and the wealth that is passed on. And this bill lowers that exemption to $1 million so that the state is able to recoup and get the dollars to really redistribute and make sure that we are really sharing in prosperity.”

Del. Stephanie Smith (D-Baltimore City) said an unfair tax system exacerbates social inequities.

“One of the things that I have been struck by when we talk about tax policy is that we have come to the realization in many quarters of our state and in America that economic inequities have led to some of the challenges that we have seen as we navigate COVID. There is a reason why some households can’t afford access to WiFi. There is a reason why some households are finding themselves with not enough food to eat…Having a more just and fair tax system is just one way we can lend a better playing field for all Marylanders moving forward.”

Smith is the sponsor of the legislation to overhaul the state’s income tax system.

“One of the things that we often worry about is: ‘How can we have a community that is safe, a community that is healthy and community where people aren’t simply living but thriving?’ And that means we have to have proper investments in all the mechanisms that allow them to live and thrive.”

About The Author

Bryan Renbaum

Bryan@MarylandReporter.com

Reporter Bryan Renbaum served as the Capitol Hill Correspondent for Talk Media News for the past three-and-a-half years, filing print, radio and video reports on the Senate and the House of Representatives. He covered congressional reaction to the inauguration of President Donald Trump as well as the confirmation hearings of attorneys general Jeff Sessions and William Barr and Supreme Court Justice Brett Kavanaugh. He also filed breaking news reports on the 2017 shooting of House Majority Whip Steve Scalise and three others. Previously Bryan broke multiple stories with the Baltimore Post-Examiner including sexual assault scandals at the University of Maryland, Baltimore County and a texting scandal on the women’s lacrosse team at that school for which he was interviewed by ABC’s “Good Morning America.” He also covered the Maryland General Assembly during the 2016 legislative session as an intern for Maryland Reporter. He has a bachelor’s degree in political science from McDaniel College. If you have additional questions or comments contact Bryan at: bryan@marylandreporter.com

1 Comment

  1. jean

    The “progressive legislators” are freeloaders, mooches or just communists who want to acquire and spend hard working MD citizens money, property or retirement assets! Then they will spend the funds on a liberal wish list of wasteful items!

    Stop spending!

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