With the passing of the tax cut bill in Washington DC, Marylanders will absolutely see an impact on their taxes. The White House and Congress lowered the tax rate, broadened taxable income by reducing the amount of deductions and simplified the tax code. Most Marylanders will see a reduction in their federal tax, but will see an increase in their state and local taxes because of the over 40+ tax increases under the O’Malley administration. Maryland is a high tax state.
The General Assembly needs to take action: increase deductions, decouple from the federal process by allowing for the standard deduction or itemizing at either level, or lower the tax rate. My vote is to lower the tax rate. This chart created by Senator Andrew Serafini gives a simplified example and clearly shows lowering the tax rate is the best way to go.
Basic Scenario for Legislative Solutions
Call your legislator and let them know which option, or combination thereof, you would like to see.