Maryland governor proposes tax relief for retirees
ANNAPOLIS, Md. (AP) — Maryland would cut state income taxes for retirees under a proposal announced Thursday by Gov. Larry Hogan.
Hogan, a Republican, said his proposal would bring more than $1 billion in tax relief for retirees over five years.
Maryland taxes have forced too many Marylanders to leave the state when they retire, the governor said at a news conference announcing the plan.
“This legislation will provide tax relief for more than 230,000 Marylanders, and it is the largest tax reduction in Maryland in more than two decades,” Hogan said. “It will help keep tens of thousands of Maryland retirees from being forced to flee our state.”
Under the plan, retirees who make $50,000 or less would pay no state income taxes, Hogan said. Retirees earning less than $100,000 would see tax reduction of no less than 50% and up to 100%, he said.
The governor’s proposal comes at a time when the General Assembly, which is controlled by Democrats, has made a wide-ranging plan to improve education a top priority of this legislative session. The plan would update the state’s funding formulas for K-12 education. It would phase in billions of dollars in new spending over the next 10 years, reaching about $4 billion annually a decade from now.
A variety of tax proposals to raise revenue for the recommendations of the Kirwan Commission already have been proposed to help implement the plan.
The commission focuses on five main policy areas with the aim of making Maryland’s public schools among the best in the world. The policy areas include early childhood education like pre-K, teaching and increased teachers’ pay, college and career readiness, aid for struggling schools and accountability in implementation.
Hogan noted how implementing the commission’s plan would increase spending by billions of dollars.
“And that’s costing real money, but when you talk about letting people keep a billion of their own money over the next five years, the question is well, how can we afford it? And how do you pay for it?” Hogan said.
Hogan said his the proposal would not start until the next budget, so adjustments would not need to be made to the budget he proposed Wednesday for the next fiscal year.