95% of Maryland Taxpayers to Pay Less

A Letter from Governor Martin O'Malley

Dear Friend,

Today, we officially begin to roll out our solution to Maryland's $1.7 billion structural deficit, unveiling our progressive income tax reform - which will result in 95% of Marylanders paying less income tax.

County Executive Jim Smith will join us at Sarah Achenbach's home in Baltimore County, along with a group of her neighbors, to discuss the challenges they face raising a family - and why it's important that we solve our deficit problem in a way that protects middle class families and gets Maryland back to making progress.

As I wrote yesterday, we've produced:

• A fair plan that protects middle-class families, education and public safety.
• It starts with $280 million in spending cuts and eliminates 147 government positions.
• Most families will pay less in taxes, as we keep Maryland competitive.
• And it represents long-term structural reform that will get our fiscal house in order, not a short-term gimmick.

Right now, all income over $3,000 is taxed at the highest rate. That means the person who owns a big office building, the person who works there from 9 to 5, and the person who comes at the end of the day to clean it all pay the same income tax.

That's not fair. Maryland can do better for working families. And under our proposal, typical families who earn up to $250,000, and singles who earn up to $185,000 will pay less.

You can read more detail about our income tax reform proposal below. Once again, please forward this email to anyone you think might appreciate the information. And thank you for your help moving Maryland forward.

Sincerely.

Martin O'Malley
Governor

Making the Income Tax Fairer For Middle Class Families

• 95% of Marylanders will pay less and have their income tax reduced
  
  
  

• New rates to reform income tax and make it fairer and more progressive

• Typical married families earning less than $250,000 - and singles earning less than $185,000 - will have their income taxes reduced.

• The tables below are calculated based on taxable income - after deductions.
  
  
  

• Refundable EITC increased to 25% of federal credit to reward work and assist working families
  
  
• Will return $33 million to working families

• Over 2.1 million tax-filers will experience a tax reduction or no change resulting in savings across a broad range of income levels: