A tax relief package for retirees, small businesses and low-income families will be signed into law by the end of this week.
On Monday, Gov. Larry Hogan, Senate President Bill Ferguson and House Speaker Adrienne Jones announced a bipartisan agreement that calls for $1.86 billion in tax relief over five years.
“Cutting our state’s retirement taxes is something we have been trying to accomplish for seven years, and I want to thank the leaders of the General Assembly for working with us to get this done for Maryland’s seniors. This agreement will deliver on our promise to provide real, long-term relief for hard-working Marylanders dealing with inflation and higher prices, and help create more jobs and more opportunity to continue our strong recovery,” Hogan announced in a press release.
The agreement calls for the tax relief during Fiscal Years 2023 to 2027. Those 65 years and older who make up to $100,000 in retirement income or married couples making up to $150,000 will get a tax break. According to the state, that includes 80% of the state’s retirees.
The new cuts include the Work Opportunity Tax Credit to help employers hire and retrain workers from underserved communities and the Family Budget Boosters, which includes sales tax exemptions for child care products including diapers, car seats as well as products for dental health, diabetes and medical devices.
The agreement also includes an $800 million investment in the Blueprint for Maryland’s Future; supports public safety and victims of crime,; assists hospitals, nursing homes and assisted living facilities; expands Medicaid dental coverage; expands access to child care, provides bonuses for public school staff, increases student aid at higher education institutions; and protects against cyber attacks.
Today, we are announcing the largest tax cut package in state history and delivering long-overdue relief for Maryland’s overtaxed retirees.
Read my full statement: pic.twitter.com/xPbArrp01i
— Governor Larry Hogan (@GovLarryHogan) March 28, 2022
