ANNAPOLIS, Md. – House Republicans are urging their Democratic colleagues to embrace broader tax cuts to reach more of Maryland’s taxpayers. During last two days of debate on the Democratic tax package, members of the House Republican Caucus noted that the proposed tax cuts add up to a mere $95.4 million in a year where the state is enjoying a historic $4.6 billion budget surplus.
“We are finally at a point where we can provide substantial tax relief for Marylanders and we should not miss out on this opportunity,” said House Minority Leader Jason Buckel. “I will support the bills before us today, but I will also tell you they do not go far enough. These proposals amount to a drop in the bucket of our record $4.6 billion surplus. Marylanders deserve to have more of their money returned to them. If we do not provide significant tax relief when we have a $4.6 billion surplus, we never will.”
Earlier this year House Democrats put forth this package of tax relief bills. One bill creates a nonrefundable credit against the State income tax for up to 50% of the federal Work Opportunity Tax Credit claimed by an employer. The remaining bills exempt specific products from the sales and use tax including diapers, baby supplies, oral care products, diabetic supplies, and some medical equipment such as thermometers and blood pressure cuffs.
This piecemeal tax package does not equate to much tax relief for many Marylanders.
“These bills before us leave out a large swath of Maryland’s taxpayers,” said Assistant Minority Whip, Delegate April Rose. “Middle class families with school-aged children would see less than a dollar in savings under this tax package. They could clip a coupon in the Sunday circular and save as much. Right now these families are paying higher food prices which are up over 9% from a year ago. They are paying much more for energy; up over 26% from a year ago. They are getting bludgeoned at the gas pump. They deserve more from us than the equivalent of Sunday coupon savings, but unfortunately that’s what they’re getting.”
These small tax cuts also happen to coincide with an election year.
“We have a $4.6 billion surplus and yet the package of tax cuts before us today will not even deliver $100 million in relief to Marylanders,” said Delegate Kathy Szeliga. “That is the definition of a gimmick. It’s too bad that this body only seems willing to pass a handful of gimmicky tax cuts instead of truly delivering real relief to EVERY taxpayer in Maryland.”
“Marylanders deserve more than mere election year gimmicks,” said Delegate Matt Morgan. “These measures sprinkle just enough tax savings to allow some members to go home in an election year and claim to have championed lower taxes. Quite honestly, it’s unacceptable.”
Under the Democratic plan, Marylanders will not save very much if they do not have young children.
“As a father of three young children, I know the costs associated with raising a young family,” said Delegate Nic Kipke. “While I appreciate the intent of these measures to ease the burden on young families, I think there are more meaningful ways we can make that happen. We are in a unique position to provide broad tax relief for nearly all Maryland families, no matter their makeup. That is what we should do.”
House Republicans have offered a wide variety of bills providing tax relief for Marylanders. House Bill 787 exempts the first $55K of retirement income from taxation for Marylanders over 65 and would return $387.5 million per year to the pockets of Maryland’s retirees. House Bill 597 increases the maximum subtraction modification on retirement income for military and other community and exempts active-duty personnel from paying Maryland income tax during the time they are deployed, returning at least $27 million to Maryland’s heroes. House Bill 144 lowers gas prices by removing the inflation increases to Maryland’s gas tax and saving Maryland drivers $37.5 million this year. HB 839 makes changes to Maryland’s income tax structure cutting income taxes by $756 million this fiscal year.
“Our Caucus came together over the interim to craft a tax package to provide a variety of tax cut proposals that would benefit as many Marylanders as possible,” said Delegate Jesse Pippy. “Let us seize this chance to work together, the way our constituents expect us to, and pass tax relief for as many Marylanders as possible. It is their money, let’s give it back.
The total value of the Democratic tax proposals, $95.4 million, represents 2% of Maryland’s $4.6 billion budget surplus.
“This patchwork of rather thread-bare tax cuts is at least a small step in the right direction,” said House Minority Whip Haven Shoemaker. “In a high tax state like ours, any tax cut is a good tax cut. I hope we take the opportunity to do more for our taxpayers. What we’re passing today only gives them about 2% of this $4.6 billion surplus. We are standing here giving taxpayers their two cents worth of tax cuts. I know we can do better.”
The package of bills now moves to the Maryland Senate.