Posts Tagged millionaire’s tax

Maryland’s Tax Law Will Change In 2011

Posted by on Thursday, 30 December, 2010

Maryland State Capitol Building

 – In 2008, Maryland began imposing a two year law that taxed millionaires at 6.25%. The law will expire on December 31st, and Governor Martin O’Malley has no intention of re-instating it. The ‘millionaire’s tax’ along with other measures, was created to help decrease the state’s $1.7 billion budget gap. Spending cuts will combat the absence of the tax in 2011.

Maryland is not the only state to have levied higher taxes on high earners recently. Hawaii, New York, Wisconsin, and New Jersey all raised taxes in a similar fashion in 2009. Oregon did in 2010, and Washington tried to, but the law wasn’t passed. With the exception of Wisconsin, all the taxes are temporary.

When Gov. O’Malley presented the tax in 2007, he pointed out that the tax would only affect 3.7% of the state’s households. It was part of a broader overhaul that actually cut income taxes for most residents. According to the state’s Comptroller’s Office, $120 million has been raised through this tax. And although this tax won’t be renewed, there will still be a 5.5% tax on income greater than $500,000.

Share and Enjoy