O'Malley's tax plan: More details
O'Malley's office put out a press release. From two personal-income brackets they want to go to six. Most income will still get taxed at 4.75 percent -- the present rate for everything north of $3,000. For married couples, every dollar earned after $200,000 would be taxed at 6 percent; and every dollar earned after $500,000 would be taxed at 6.5 percent. In the lower brackets (again for couples filing jointly), income from$ 0 to $2,000 would be taxed at 2 percent; $2,000 to $4,000, 3 percent; $4,000 to $22,500, 4 percent.
If enacted, the plan would effectively make Maryland's highest marginal income-tax rate 9.7 percent, when you count the "piggyback" income tax charged by counties. That's quite high -- higher than in every state but Rhode Island and California.
Comments
bullcrap and lies
Posted by: al | September 19, 2007 6:30 PM
Am I correct in saying that this tax increase package is only necessary to meet a "proposed" budget, not current actual spending??? In other words, if we spent the same amount next year that we are spending this year, the tax increases would not be necessary???
Thanks a lot, voters for O'Malley
Posted by: Art Warshaw | September 19, 2007 10:29 PM
Great,just great,now when they are in session they can vote for a raise for themselves!! Number one in the murder rate and now third in taxes and climbing!!! Such great leadership!!Don't you think gambling would help,both for jobs and income!!!Use that Irish head for something other than to put a hat on!!!
Posted by: Doug | September 20, 2007 8:09 AM
The local tax is no longer a piggyback tax. Years ago there was a local piggyback tax, which meant the local governments would have tax rates of 50% or 60% of the state tax. So, if you paid $1,000 in State Tax you would pay $500 in County Piggyback Tax. Now local governments tax around 3% on adjusted gross income just like the State taxes 4.75%.
I understand this is all details that don't matter to most people. I agree the tax rate on high income earners will be as high as 9.7%, depending on what county the person resides.
Now, it is possible the counties could raise taxes. So far the Guv has not said anything about spending cuts, but if the spending cuts are at the expense of aid to local governments, particulary teacher retirement costs, we could see counties raising their taxes. There is a State cap on local taxes at 3.2%, but the last time the State passed on signifigant costs to the counties - teacher social security costs- the State raised the cap on the then piggyback tax, and most if not all counties increased their income tax. Even if the State did not increase the cap on income tax, I don't think you could rule out some counties raising other taxes to address the shortfall.
Posted by: Robert | September 20, 2007 8:29 AM
I can't pay anymore money to these "fatcats". When do I get keep the money me and my husband earn?
O'Malley is not good for Maryland.
Posted by: Cheryl | September 20, 2007 11:43 AM
Jay Hancock is not a trained economist and therefore is not qualified to make such an opinion. I recommend that he read "Economic for Dummies."
Note to Jay: Raising taxes when the economy is predicted to slow is a recipe for disaster!!!!
Posted by: Mike | September 20, 2007 12:46 PM