Maryland Governor Proposes Tax Relief Package
Maryland Gov. Larry Hogan proposed a major tax relief package for the upcoming legislative session Tuesday, but much of what the Republican supports has stalled in the General Assembly in recent years.
Hogan said it would provide more than $ 4.6 billion in aid to Maryland families, small businesses and retirees.
About $ 4 billion would be phased in beginning in fiscal 2022 for retirees. The plan would eliminate state retirement taxes, but the governor’s previous broad-based proposals to cut taxes for retirees have made no progress.
The governor’s plan would also make permanent the enhanced earned income tax credit in last year’s RELIEF Act of 2021. It increased the refundable tax credit to 100% for workers without a qualifying child and 45% for other workers, but the relief is currently temporary.
This bill would provide working families with another $ 650 million in cumulative tax relief.
The proposal comes as Maryland runs a huge budget surplus this year due to federal pandemic relief.
Maryland’s 90-day legislative session begins Wednesday.