State leaders home in on tax relief: What proposals will Hogan, Democrats agree on? – Capital Gazette
In a session punctuated by partisan skirmishes, Gov. Larry Hogan and the General Assembly’s Democratic leaders have at least one thing on which they generally agree: tax relief.
Hogan, Senate President Thomas V. Mike Miller Jr. and House Speaker Michael E. Busch have all introduced legislation this year to lower taxes on individuals and businesses in Maryland.
But that leaves a big question: Just what will the legislature approve?
Some of the proposals overlap — such as speeding up an increase in income tax credits for low-paid workers. Others present diverging views on where to focus relief.
The Hogan administration has said it broadly supports lower taxes for Marylanders, but the governor has not commented specifically on the Democrats’ legislation.
Still, “the planets today would seem to be aligned,” Norman Augustine, the former CEO of Lockheed Martin and chairman of the so-called Augustine commission, told lawmakers at a hearing last week.
“The governor and legislative leadership have been heavily focused on competitiveness and creating jobs. We shouldn’t waste this opportunity.”
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Benjamin Orr, executive director of the Maryland Center on Economic Policy, considered to have a liberal outlook, took a more cautious approach to talk of corporate tax cuts.
“If Maryland were to reduce its corporate tax rate, were to switch to a single sales factor or if the state were to adopt the governor’s proposal to exempt manufacturers (from property taxes), that’s a tremendous hit to the state budget and programs and services that, frankly, business relies on in many ways, that all of us rely on,” Orr said.
Orr takes exception to the characterization of Maryland as a state unfriendly to business. The state’s educated workforce, high-ranking schools and transportation infrastructure are major draws, he said.
