To relieve budget pressures and address structural shortfalls that are projected to grow to approximately $3 billion by fiscal year 2029, legislators have introduced SB 766 (HB 1007) to implement combined reporting for corporations doing business in Maryland. Other tax revenue generating changes in the bill include – raising taxes on people whose income is $1 million a year or more, reversing a 2014 estate tax exemption and reinstating a $2 million exemption, and adding a 1% surcharge on capital gains. The bill’s supporters say that once phased-in it would generate $1.6 billion annually and pay for a tax credit for low-income workers.
Senate leaders who have consistently been against raising taxes to solve Maryland’s budget issues have not been so supportive of this bill. This sparked a heated exchange between certain county executives and senate leaders. Anne Arundel County Executive, Steuart Pittman and Montgomery County Executive, Marc Elrich who spoke in Annapolis in support of the bill on Wednesday had strong reactions.
“Legislators survive on a diet of campaign contributions to get into office and to stay there,” said Pittman. “The largest donors tend to be the very interests lobbying for loopholes and opposing a fair distribution of the tax burden.”
“Those checks do not come without strings,” said Elrich. “Nobody should be confused. You’ll hear people say these are our friends. Yeah. OK. They’re friends and the friends will come with asks.”
Senate President Bill Ferguson made it clear that the comments from the county executives crossed a line.
“I just remind them that it is often that we have policy differences here and there,” said Ferguson. “But when they come down and continuously ask for help over and over, and then decide to do a press conference, questioning the motives of the members of this chamber, I would encourage them to really rethink that approach.”
