As previously reported on Conduit Street, a special session is convening today in Annapolis to address budget related issues that did not make it through on the last day of the regularly scheduled session. As reported by ABC News, “the two major items on the agenda are increasing the income tax for workers and families earning six figures, and shifting teacher pensions from the state to counties.”
If they succeed this week, income tax rates for the 16 percent of Marylanders who make $100,000 or more would rise a quarter percentage. That would amount to hundreds of extra dollars annually for a couple reporting a combined income above $175,000, and thousands of extra dollars yearly for those reporting more than $1 million.
The tax increases would be retroactive to Jan. 1, meaning payroll deductions to date may not be enough to cover the tax bills affluent Marylanders would face next spring.
The legislature’s tax plan would also raise levies on little cigars increasingly sought after by adolescents from 15 percent to 70 percent, and increase taxes on smokeless tobacco products from 15 percent to 30 percent.
Under accompanying budget language, Maryland would also end a practice of being one of the most charitable states in covering local teacher pension costs. The state would proceed with a plan to shift about half the costs to counties to partially alleviate the growing burden on the state’s retirement system.
Additional coverage of the special session can be found below.
Stay tuned to Conduit Street for coverage of the special session.