Tax Reform Debate Underway in Maryland

The Maryland General Assembly last week began a special session to consider Governor Martin O'Malley's $1.7 billion deficit reduction package, holding hearings on each of the key elements in the package.  ITEP staff testified on a number of the tax policy changes the Governor has recommended, including a more progressive personal income tax rate structure, an expansion of the sales tax base and an increase in the sales tax rate, and efforts to close corporate tax loopholes through the adoption of combined reporting.  The Center on Budget and Policy Priorities has also released several helpful reports on the Governor's tax proposals, detailing ways to generate additional tax revenue in Maryland and to protect low-income taxpayers from regressive tax increases.  Progressive Maryland and the Alliance for Tax Fairness will hold a statewide Town Hall Meeting on Tuesday, November 6 in Annapolis to give concerned citizens an opportunity to express their support for a more equitable tax system.  As the Washington Post opines, the fate of Governor O'Malley's proposal is uncertain, but the need for action - and for important reforms like a more progressive income tax and a more robust corporate income tax - are clear.