taxes

As Republican delegates railed against the proposed state income tax hike Wednesday afternoon, a lone freshman Democrat from one of the most liberal and affluent districts inside the Capital Beltway got up to explain why she too could not vote for the taxes.

“I believe this discriminates against two-income families with children at home,” said Del. Ariana Kelly, a Bethesda mom with two young children at home.

The action on the budget and tax hikes was all over but the shouting by Republicans as the House of Delegates approved a final spending plan, shifting half of pension costs to the counties, and raising state income taxes on people making over $100,000 per year. Republicans opposed the move, joined by 10 Democrats against the budget change and pension move, and 18 opposed to the tax increases.

As one delegate put it, it was déjà vu all over again as the House of Delegates on Tuesday rejected amendments to a revised spending plan and $300 million in tax hikes that had often been proposed in the regular 90-day session. The Senate passed the bills earlier in the day, and the House is set to take a final vote Wednesday.

The Maryland Senate is expected to give final approval today to a package of tax hikes that will raise more than $300 million a year.
But a little noticed provision will also raise $36 million in new taxes from companies that back mortgages on commercial development and homebuilding. Opponents say it will add to the cost of construction and harm Maryland’s business rankings.

In this podcast, House Speaker Michael Busch spoke to reporters about the budget and the cuts that would have to be made if tax increases don’t pass. “Only 16% of Marylanders are being asked to pay a little more.”