The Senate Republican Caucus is pushing its own package for addressing the impacts of federal tax reform on Maryland taxpayers. Their plan entails allowing people to itemize at the state level even if they do not at the federal level, and increases deductions or lowers rates to keep state tax bills constant.
There is general agreement about “decoupling” the itemization requirement from federal taxes, reports The Frederick News-Post.
Other proposals include:
[Governor] Hogan, in addition to decoupling federal and state taxes, will aim to make permanent a provision in the Maryland tax code that says state taxes will not be impacted by federal changes for one year.
Senate President Thomas V. Mike Miller Jr. (D) and House Speaker Michael E. Busch (D) proposed a plan last month from Democratic legislators that would restore personal exemptions and create a state-run education fund that would allow Marylanders to claim donations as charitable expenses for tax purposes.
They would also try to negate the doubling of the federal estate tax exemption from $5 to $10 million by keeping it at $5 million in Maryland.