Tax Cuts and Increases Featured in Moore’s Growth Agenda for Maryland
Governor Wes Moore’s budget plan aims to address a $3 billion deficit with tax cuts for many and increases for high earners in Maryland
Maryland, Wes Moore, Tax Cuts, Budget, Economy
Maryland: Governor Wes Moore has rolled out a budget proposal that he believes will help tackle a projected $3 billion deficit. His plan includes tax cuts for many residents while also raising taxes for those earning over $500,000. It’s a balancing act aimed at boosting the state’s economy.
The proposed budget is about $67.3 billion, which is a slight increase from last year. It includes $2 billion in cuts and efficiencies to help close the budget gap. Moore is optimistic that these tax breaks will stimulate economic activity in Maryland.
Moore emphasized the need for growth, especially as the state’s economy struggles post-pandemic. If nothing changes, that $3 billion deficit could balloon to over $6 billion by 2030, according to analysts.
Maryland’s Budget Secretary, Helene Grady, mentioned that the plan could flip the deficit into a positive balance by the end of fiscal 2026. The budget also aims to reduce overall spending in the general fund.
To cover the remaining deficit, the state plans to restructure its tax code. Moore pointed out that the real issue isn’t that working Marylanders aren’t contributing; rather, it’s about ensuring that tax cuts benefit the majority.
He also proposed cutting the corporate tax rate to attract more businesses and eliminating the inheritance tax, while keeping sales and property taxes stable. It’s been a while since Maryland adjusted its sales tax, which has been at 6% since 2008.
Democrats in the legislature generally support the plan, seeing it as a step toward addressing the structural deficit. They’re keen to work with Moore to lower the cost of living for Marylanders.
However, some Republicans are concerned about the tax increases, arguing that they could drive high-income earners out of the state. They worry that this could lead to job losses, which would be counterproductive to the budget’s goals.
Moore’s budget also includes significant funding for transportation projects, aiming to leverage federal funds to improve infrastructure. This includes plans for Baltimore’s light rail and highway safety projects.
Overall, while the budget proposal has its supporters, it also faces criticism and concerns about its impact on various programs, especially those aiding vulnerable populations. The coming discussions in the legislature will be crucial in shaping the final budget.