Senate Approves Budget, Including Income Tax

ANNAPOLIS, Md. (WJZ)—More taxes. That’s what the state Senate approved Thursday as their budget now heads to the House of Delegates.

Andrea Fujii explains how it’ll affect you.

The Senate approved raising income taxes across the board. But some would be paying more than others.

The Senate finalized their budget in less than two days with some controversial plans, starting with state income tax increases.

Anyone earning $3,000 to $25,000 a year would see their rate go up .15 percent; $25,000 to $75,000 earners will be raised by .2 percent.  Paying the most are people with incomes of $500,000 plus. Rates would raise .25 percent. That’s a total state rate of 5.75 percent. That means a total 8.95 percent for Baltimore residents.

The move would generate $475 million.

“If you’ve made a success in your life — if you think money is a success — we have an obligation to do our part for everybody,” said Sen. Mike Miller, (D) Senate President

“It raises taxes sharply, it increases spending sharply. I don’t think that’s what the working families of Maryland sent us to do,” said Sen. E.J. Pipkin, (R) Senate Minority Leader.

Maryland residents are also split.

“I think if you work hard and you make a lot of money you shouldn’t be penalized,” said one resident.

“That sounds fairly marginal given the amount of support the state provides,” said another.

The Senate also approved an Internet tax, imposing the 6 percent state sales tax to all sites.

The Senate’s budget is $36 billion— $1 billion more than last year.

Another controversial topic: teacher pensions. The Senate voted to shift the cost from the state to counties, saving the state $225 million a year.

The complete shift to counties paying teacher pensions wouldn’t start for another four years.

The tax increases are expected to start in July.

The House of Delegates will take up the Senate’s budget next week.


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