The Senate approved the state’s entire $35 billion budget package and reforms to maintenance of effort on Thursday as the spending plan cleared its first major hurdle before heading to the House of Delegates for further tweaking.
Included in the Senate package is a plan to raise the state income tax across the board for almost every Marylander. An amendment adopted to the plan Wednesday night that adds to that increase for the state’s top earners dominated much of the debate.
|Sen. David Brinkley|
The original bill, sponsored by Sen. Roger Manno, D-Montgomery, repeals a 1997 tax cut and raises the state income tax rates for anyone making more than $3,000 a year by .25%. However, a committee amendment adopted on Wednesday imposed what Sen. David Brinkley, R-Frederick, called a “half-millionaire’s tax” by further increasing the tax rate on anyone making more than $500,000 a year from a proposed 5.5% to 5.75%. The increase would affect around 19,000 households and net an additional $30 million in revenue designated for restoring old schools.
Republicans argued that when adding local county taxes, those making more than $500,000 a year could be taxed at a combined rate totaling 8.95%, which would push job creators from the state.
Read more: http://marylandreporter.com/2012/03/15/senate-votes-to-increase-state-income-tax-as-debate-gets-personal/#ixzz1paRncphL
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