Do The Right Thing
Today Governor Larry Hogan held a press conference to announce specifics about his tax plan, and it’s a win win for working class Marylanders:
Maryland Gov. Larry Hogan on Tuesday unveiled the details of his 2016 tax-relief plan, proposing modest cuts for retirees, low-income families and manufacturing businesses that move to the state, in addition to fee reductions.
Hogan (R) said the proposed changes, which add up to about $480 million in revenue cuts, would help “Marylanders who desperately need it most.”
The governor said last week that his tax-relief plans would benefit about 1 million residents — one-sixth of the state’s population — and 300,000 small businesses.
Most changes in taxes and fees would have to be approved by the legislature, where Democrats hold strong majorities in both chambers.
On Tuesday, Hogan proposed accelerating the state’s plans to increase of the Earned Income Tax Credit that helps the working poor, allowing families earning that earn less than $53,000 a year to save an additional $27 million over the next two years. Current law calls for the benefit to increase from 25 percent of the federal Earned Income Tax Credit to 28.5 percent by 2019. The governor did not say how much his plan would speed up that timeline.
Hogan also called for a 10-year exemption to the state’s corporate income tax for new manufacturers located in designated areas that have high unemployment, including Baltimore, Western Maryland and the lower Eastern Shore. Employees who work for those companies and earn less than $65,000 a year would not pay income taxes during the same period.
Additionally, the governor proposed reducing the $300 business-filing fee by 17 percent for four years, helping an estimated 300,000 companies.
Bryan Sears of the Daily Record has the full video of the Governor’s presser here:
LIVE : Press conference with Gov. Larry Hogan
Posted by Bryan P. Sears on Tuesday, January 12, 2016
These proposals of course or a win-win for Marylanders. I was working class Marylanders, many of them below the $53,000 a year line, who bore the brunt of the 40 consecutive tax increases passed by Martin O’Malley and Maryland’s Legislative Democrats. It is imperative that they see meaningful tax relief so they have every opportunity to prosper like so many of their neighbors.
This of course this puts legislative Democrats in a precarious position. These Democrats are insistent that Maryland could not afford tax cuts in this fiscal climate. However, Senator Rich Madaleno opened the door for a tax cut while on The C4 Show last week:
That puts Madaleno in a spot. Because we are all fully aware of Madaleno’s political and personal disdain for Governor Hogan.
It’s time to see the Democrats put their money where their mouth is. It’s time for Madaleno and other legislative leaders to support Governor Hogan’s tax cuts.