Annapolis, Maryland – The governor of Maryland, Wes Moore, announced an agreement on a state budget framework with the state’s democratic leadership on Thursday, criticizing the rates of President Donald Trump and the dramatic reduction of the federal government while announcing increases in taxes and cuts to address a state deficit of $ 3.3 billion for the next fiscal year.
Tax increases include a new 3% tax on information technology services, as well as a new income tax winner for the richest residents of the State.
“We have talked to Marylanders at all income levels about this plan, and there is a consensus that if a person is earning more than $ 750,000 a year, it is reasonable to ask them to give approximately $ 1,800 more to help us invest in the success of our state,” said Moore, Democrat.
The plans also include tax increases in the game and cannabis, as well as a new 1% tax on capital gains for people with income greater than $ 350,000.
Moore and other main legislators criticized the Republican President often at a press conference at the State Capitol. The governor said that the Moody’s grades agency recently pointed out that federal cuts represent a major threat to Maryland than any other state.
“The president has launched a reckless trade war with our allies, including our largest commercial partners, and those rates could mean an impact of more than $ 2 billion on our economy and directly damage our people,” said Moore, said
He added that Trump hit the state last week by announcing plans to cancel relocating a new FBI headquarters in Maryland.
The Republicans said that the president was wrong for the tax problems of the State, because Maryland’s budget deficit existed long before Trump returned to office in January.
“You did not hear a little responsibility for any of the democratic leaders,” said Del. Jesse Pippy, a Republican who is the whip of the Chamber’s minority. “You did not do it. You heard them blame Trump for every problem we have in the state, and simply increased our taxes at least one billion dollars.”
But the governor emphasized that 94% of the Marylanders “will obtain a reduction of taxes or will not see changes in their income taxes.” However, it did not provide an estimated average tax reduction for those who saw reductions, saying that the work was ongoing to determine those numbers.
Moore and other leading Democrats, who largely control the State Legislature, described the budget plan as a very necessary modernization of state’s income sources.
“As our economy becomes more and more digital, this expansion of income recognizes the growing role of you in our daily lives and commercial operations and the use of technology to replace workers,” said Senate President Bill Ferguson, Baltimore Democrat. “It also recognizes that many goods, such as software programs, are now sold as annual or monthly services.”
The new tax would apply to services such as the creation of websites, as well as services that help people store information in the cloud, such as Amazon Web Services.
Ferguson said that the new capital gains tax will be used to invest in transport and help add a new income flow to the budget, and linked the new tax with the Trump plan for a tax reduction for the rich.
“What we do know is that Trump’s tax cuts that focus on billionaires probably help those who have done their best, so this is the right place for Maryland to seek to have a sustainable investment in our infrastructure and in our budget,” Ferguson said.
The Plan includes around $ 2.3 billion in cuts, approximately $ 500 million more than the governor included in its initial budget proposal in January. Del. Ben Barnes, a Democrat who presides over the Chamber Assignments Committee, said that cuts prior to the administration of developmental disabilities have been restored.
Moore described the cuts as the most significant in 16 years, but few details about them were offered at the press conference, a very criticized omission by the Republicans.
Del. Jason Buckel, a republican of the west of Maryland and the leader of the Chamber’s minority, described him as “very disappointing, the incredible lack of detail.”
“Basically, everything I took away was that we are going to increase people’s taxes,” Buckel said. “We are making cuts. We can’t tell you what the cuts are.”
Legislators still have to approve a balanced budget before the end of the legislative session on April 7. The governor described the agreement on Thursday as a framework in its main components, although the work remains in the coming weeks.
“This framework will inform the final budget and the final bill that goes from the camera to the Senate, and I hope to sign it when I reach my desk,” said Moore.
