Maryland state lawmakers are working on completing a $67 billion budget for the state government and are considering various options, including tax increases and spending cuts, to maintain financial balance. The economic fallout from the reduction of federal government jobs by the Trump administration is adding to the challenge.
Governor Wes Moore has proposed a tax package that includes changes to income tax rates, corporate taxes, home delivery fees, and taxes on cannabis, among other things. These changes are expected to generate more than $1 billion per year. Another proposal under consideration is a business-to-business tax that would raise $1 billion annually.
Other options being discussed include legalizing online gambling, implementing the Fair Share Maryland plan to increase taxes on high earners, and introducing a sugary drinks tax. Lawmakers are also considering changes to the state’s sales tax, vehicle taxes, firearm taxes, and property taxes, among others, to generate additional revenue.
Nonpartisan analysts have suggested additional options like increasing the state property tax, transfer tax on high-value properties, and charging sales tax on salty snacks to raise more money. Lawmakers are exploring these various options to address the budget challenge.
The outcome of these proposals remains uncertain, with some facing opposition and others having better odds of passing. Lawmakers are diligently working to find a balance between generating revenue and minimizing financial burdens on Maryland residents while funding essential government programs.
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