Md. passes income tax hike on six-figure earners

By Aaron C. Davis,May 16, 2012
(Page 2 of 2)

O’Malley has countered that General Motors has expanded its production of electric hybrid engines in Baltimore and that the number of private-sector jobs has increased by a higher percentage in Maryland in the past 12 months than in Virginia.

But this week’s action by Maryland lawmakers also diverged notably from steps taken in other Democratic-leaning states.

Last year, New York increased tax rates for its wealthiest residents, but the state cut taxes for most couples reporting incomes of less than $300,000. And California Gov. Jerry Brown (D) will ask voters in November to approve higher taxes on the wealthy to close a growing budget gap. But his ballot measure would hit those with incomes above $250,000.

Since the recession, 10 states have raised income tax rates, but seven of the increases were temporary and have since been reduced, Henchman said.

This week’s action on taxes left only the gambling issue unresolved for the legislature. O’Malley said he is committed to holding a second special session, probably in July, to take another look at an expansion of casino gambling.

“Certainly, we have to address the gaming issue,” O’Malley said. “The presiding officers are pretty committed to it, as am I.”

Maryland tax increases

Marginal tax rate increases

For single filers, on income of:

●$100,001 to $125,000: to 5 percent from 4.75 percent.

●$125,001 to $150,000: to 5.25 percent from 4.75 percent.

●$150,001 to $250,000: to 5.5 percent from 5 percent.

●$250,001 to $500,000: to 5.75 percent from 5 percent or 5.25 percent.

●$500,001 and above: to 5.75 percent from 5.5 percent.

For joint filers, on income of:

●$150,001 to $175,000: to 5 percent from 4.75 percent.

●$175,001 to $225,000: to 5.25 percent from 4.75 percent or 5 percent.

●$225,001 to $300,000: to 5.5 percent from 5 percent.

●$300,001 to $500,000: to 5.75 percent from 5 percent or 5.25 percent.

●$500,001 and above: to 5.75 percent from 5.5 percent.

Exemption reductions

For single filers, on income of:

●$100,001 to $125,000: to $1,600 from $2,400.

●$125,001 to $150,000: to $800 from $1,800.

●$150,001 and above: to zero from $1,200 or $600.

For joint filers, on income of:

●$150,001 to $175,000: to $1,600 from $2,400.

●$175,001 to $200,000: to $800 from $1,800.

●$200,000 and above: to zero from $1,200 or 600.

Source: Maryland General Assembly

Staff writer John Wagner contributed to this report.

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