To all members of the Maryland General Assembly,

We, the undersigned, ask that you refrain from giving tax breaks to those who need them least, at the expense of hard working Marylanders and our state’s future.

The amended version of Senate Bill 840 that has passed the Senate would give the largest tax break to those who need it the least. At the same time, it would take away significant resources that Maryland needs to maintain good schools, safe communities, a well-functioning transportation network, and public investments in a strong economy and broad prosperity.

We urge the House Ways and Means Committee to pass a clean Earned Income Tax Credit (EITC) expansion for young workers and remove the costly amendments that would provide tax breaks for the wealthy.

This bill is not a “tax break for everyone,” as some are claiming. If not amended, the top 1 percent of taxpayers, with incomes over $520,000 per year, would shave an average of $1,734 off their tax bills once SB 840 was fully phased in, but the rest of Maryland would see far less.

On the other hand, middle-income families will be paying essentially the same level of income taxes as they are today, with a total average cut of $16 per exemption phased in over four years; and when public services are threatened because of this giveaway to Maryland’s wealthiest, they will be asked to pick up the slack.

Cutting income tax rates for people with incomes over $100,000 ($150,000 for married couples) as the amended SB 840 proposes, will cost $370 million over five years. This is money that could be better spent on our education system, improving highways and transit systems, or making other investments that would actually boost the state’s economy.

However, it is also imperative that we maintain the EITC expansion component of the bill. This portion would be a huge help for working, taxpaying Marylanders who struggle to get by on very low pay. Increasing the state EITC for people who don’t claim dependents on their taxes and expanding the credit to cover workers between ages 18 and 24 is a common-sense policy that helps hundreds of thousands of hard working Marylanders make ends meet.

Unlike the upper-income tax breaks, this money invested in the EITC will boost the state’s economy. People with very low incomes are much more likely to spend the extra money from a tax refund locally, on things they need but couldn’t otherwise afford, like child care and car repairs.

But this can be done without costly giveaways to millionaires and a token nod to the middle class. We urge you to amend this legislation to give meaningful help to those who struggle to make ends meet, without putting the state’s future at risk.