House Speaker Michael E. Busch and Senate President Thomas V. Mike Miller Jr. on Tuesday announced a package of bills designed to ease Maryland taxpayers’ increased tax burden resulting from the federal government’s tax reform package. The legislative package includes a proposed expansion of personal exemptions at the state level and a decoupling of the estate tax from the federal system.
Federal tax reform capping state and local tax (SALT) deductions at $10,000 will impact Marylanders more than the residents in any other state. The average SALT deduction claimed in Maryland is $12,931. Senate President Miller said the change results in “double-taxation on the people of Maryland.”
Speaker Busch said the federal law will “take away $680M in exemptions from Maryland.” According to President Miller, the General Assembly will “restore personal exemptions… so that [Marylanders] will continue to get the standard deduction provided under federal law, but on top of that [Marylanders] will be able to claim personal exemptions.”
Delegate James J. “Jimmy” Tarlau will sponsor a bill to decouple the Maryland estate tax from the federal estate tax, which, according to Delegate Tarlau, will protect Maryland from $60 million in lost revenue from an increase in the assets exempt from the federal estate tax.
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