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Maryland Tax System Ranks High in Overall Fairness

A recent study has shown that when it comes to fairness, Maryland’s system of taxation ranks quite high. The responses offered by respondents in a recent analysis conducted by financial information firm WalletHub indicate that many residents of the state feel that tax obligations are spread more equitably, whereas residents of numerous other states believed the opposite was true concerning their respective systems.

Even with a reputation of fairness, the tax system in Maryland routinely gives rise to disputes and controversies, and that is when Rosenberg Martin Greenberg’s experience and know-how can prove invaluable.

State tax systems ranked for fairness

In its examination of tax systems across the country, WalletHub asked 1,000 participants the general amounts of tax individuals of varying income levels ought to pay. Then, those answers were compared against the actual tax rates imposed in jurisdictions across the country. The outcomes were rather straightforward, in that most respondents opined that the wealthy should be taxed more than the poor, though in most states, just the converse is actually the case. Thus, WalletHub’s reading of the data indicates that most of the state and local tax systems in the United States are unfair by virtue of the respondent’s descriptions of appropriate taxation, since they place a heavier burden on middle class and poorer taxpayers than they do on wealthier individuals.

Such a conclusion may not seem surprising to many, though it paves the way for Maryland’s system to rank high in the fairness scale due to the particular modes of tax assessment used. Maryland’s perceived tax fairness may stem in large part from the fact that in comparison to other states, it relies far less on revenue gleaned from sales and excise taxes in order to meet its own budget goals.

Furthermore, Maryland residents with an earnings of up to $100,000 will pay taxes of $90 plus an additional 4.75 percent of their income, whereas those earning more than that amount will pay upwards of 5.75 percent.

Winners and losers in tax fairness survey

State tax systems rated highest in terms of fairness were generally characterized by a perception of more equitable distribution of obligations among income levels, with the top ten states in order of fairness being:

  1. Montana
  2. Oregon
  3. South Carolina
  4. Delaware
  5. Idaho
  6. Minnesota
  7. Utah
  8. Virginia
  9. Colorado
  10. Maryland

Experienced Maryland tax attorneys

There can be no doubt that even a tax system described by the majority as overwhelmingly fair can pose significant challenges for individuals and businesses working to remain in full compliance. The seasoned Maryland tax lawyers at Rosenberg Martin Greenberg have the knowledge, negotiating experience and comprehensive insights required to resolve tax disputes on the state as well as the federal level.

Whether you are facing a tax audit, have unfiled returns, owe substantial tax balances or are in need of some sound, strategic tax planning advice, our team is ready to help. For a confidential consultation to discuss your specific tax issues and concerns, contact Brian Crepeau at 410.649.4981 or via email at bcrepeau@rosenbergmartin.com.

Rosenberg Martin Greenberg

25 South Charles Street, 21st Floor MD 21201
Phone: 410-727-6600
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Rosenberg Martin Greenberg

705 Melvin Avenue Annapolis, MD 21401
Phone: 410-727-6600
Map & Directions