Hogan, Maryland legislative leaders announce long-term tax savings for residents
Maryland residents stand to save $2 billion under a new tax relief agreement, Gov. Larry Hogan announced.
The governor said Monday afternoon a deal has been reached with Senate President Bill Ferguson, D-Baltimore City, and House Speaker Adrienne Jones, D-Baltimore County, to provide $1.86 billion in tax relief over the next five years. Coupled with the recent gas tax suspension, the savings reaches the $2 billion mark.
The tax cuts, according to the release, will benefit retirees, small businesses, and low-income families in the state. The agreement is expected to be signed later this week, Hogan said.
“Today, we are announcing the largest tax cut package in state history with major and long-overdue relief for Maryland’s retirees,” Hogan said in the release. “Cutting our state’s retirement taxes is something we have been trying to accomplish for seven years. This agreement will deliver on our promise to provide real, long-term relief for hard-working Marylanders dealing with inflation and higher prices, and help create more jobs and more opportunity to continue our strong recovery.”
Ferguson said the COVID-19 pandemic has “shown the cracks” in issues the state’s citizenry faces.
“As I’ve said since the beginning of the 2022 Legislative Session, everything we do must prioritize our state’s economy and the health of our residents,” Ferguson said in the release.
Jones said the agreement will help “thousands of seniors on fixed incomes” address inflation and “puts families on a stronger footing.”
“The significant increase in capital spending, coupled with the Work Opportunity Tax Credit, will help Maryland businesses put more chronically unemployed Marylanders back to work,” Jones said.
Under the agreement, the release reads, single retirees earning up to $100,000 in retirement income and married retirees earning up to $150,000 in income will either get significant tax relief or not pay taxes at all. The relief totals $1.55 billion.
The Work Opportunity Tax Credit will provide $195 million in tax relief and help businesses hire and retain workers that have overcome barriers to employment and are from underserved communities.
Also included in the package are sales tax exemptions for child-care products, including diapers, car seats, and baby bottles; and dental hygiene products, diabetic care products, and medical devices. The relief is a savings of $115.6 million.
According to the release, the agreement will invest $800 million in the Blueprint for Maryland’s Future and continue to provide record levels in the Rainy Day Fund.
Other investments under the plan include supporting safety and crime victims, support hospitals, nursing homes, and assisted living facilities, while also expanding Medicaid dental coverage to adults, in-home medical care, and autism services.
The agreement, according to the release, will also expand access to child care, provide bonuses for public school staff, and increase student aid at the state’s colleges and universities.
This article was originally posted on Hogan, Maryland legislative leaders announce long-term tax savings for residents