The House of Delegates Tax Plan
To review the bidding.
Governor O’Malley proposed creating two new tax brackets (6% and 6.5%) which would generate about $162 million (or whatever number the governor is using today) while kicking back $30 million to the “Seniors/Working Poor”.
The Senate proposed two new brackets (5% and 5.5%) which would generate $185 million with about the same amount kicked back in “tax relief” from the newly imposed taxes.
The House goes whole hog:
Under the House income tax proposal, the 5.25 percent rate would apply to net individual income over $125,000 a year, and income for joint filers over $175,000 a year. The 5.5 percent rate would kick in at $150,000 for individuals and $200,000 for couples, and the 5.75 percent rate would apply to individual incomes above $200,000 a year and joint incomes over $250,000 a year.
The House plan would provide a break for individuals earning less than $100,000 a year and for couples earning less than $150,000 by increasing the individual exemption to $3,200. The exemption is currently $2,400.
This plan will generate $332 million (wow!) but will kick back a whopping $127 million in “tax relief”.