Maryland legislators have made progress in advancing a series of tax-relief measures which, if adopted, would offer advantages for taxpayers of all income levels and corporations having a base of operations within the state. These plans are in keeping with Governor Hogan’s longstanding objective to alleviate the tax burden on Maryland residents in order to strengthen the state’s economic outlook.
The Maryland tax attorneys at Rosenberg Martin Greenberg stand prepared to help individual and corporate clients successfully navigate any and all eventual adjustments to the state’s tax rules.
Senate and House committee hurdles cleared
Last week, the Senate Budget and Taxation Committee put its stamp of approval on proposed bills designed to lower tax rates for those in higher income brackets, expand the Earned Income Tax Credit for those classified as “working poor” and raising the exemption amount for earners in the middle income range. The proposals move onward for consideration by the full chamber, with final passage expected in the coming days.
The House Ways and Means Committee also gave the go-ahead to a proposal meant to eliminate income taxes on corporate overseas earnings which have already been subjected to taxation elsewhere. Also approved was a measure that would permit corporations to be taxed at a rate determined by their Maryland sales only,, instead of using a formula considering payroll, sales and property held within the state. The motivation behind this measure is to incentivize companies to remain in Maryland or relocate to the state by reducing potential state tax liabilities.
Critics, however, have suggested that a number of important energy, retail and agriculture firms could in fact experience increases to their tax burdens because they have out-of-state headquarters.
Proposals prove controversial for some
Though the broad-based tax-relief proposals have garnered praise from many in the Maryland legislature, not everyone is happy with the concept of providing tax breaks to higher-income earners. Several advocacy organizations including those representing public school teachers and state employees have stated that the revenue lost by way of tax cuts could be better used to boost funding for infrastructure, education and other public welfare priorities. Though the actual tax savings for most of those impacted by the measures will be relatively modest, some opponents have argued that parts of the plan represent an unnecessary handout to individuals and corporations who need it the least.
Seasoned guidance for Maryland taxpayers
Though the final implications of these proposed tax-relief measures remain to be seen, individual and corporate taxpayers across Maryland can rely on Rosenberg Martin Greenberg’s team of professionals to assist them with evaluating how these changes may affect their liabilities now and into the future.
We are ready and willing to bring our years of expertise to bear in helping clients minimize tax obligations, remain in full compliance with the law and achieve optimal tax planning outcomes. To schedule a confidential consultation to discuss your specific situation and concerns, contact us at 410.727.6600.