In Maryland, the lower a family's household's income is the larger is the share of it that goes to state and local taxes. A family with $24,000 in taxable income pays on average 10.3 percent of it in state and local taxes. A family making over $481,000 — the top one percent of Marylanders — pays 6.7 percent of its income in state and local taxes.
New legislation would help right this unfairness and still make sure Maryland has the resources needed to invest in schools, health, safe communities and other building blocks of economic growth.
Under Senate Bill 389 and House Bill 240, more than 90 percent of households would pay less in state income tax while those in the top 1 percent would see an increase.
Nearly 8 percent of Maryland households are millionaires — the nation's highest rate. The experience of other states shows that there will be no mass exodus of wealthy people if their income tax rates rise a little. No state has ever lost money by following such a policy.
There was a furor over the claim that millionaires were leaving the state after a tax increase in 2006. But further review showed that mostly they moved down, not out: The recession had dragged their net worth below the $1 million mark.
Maryland will be a better place for everyone if the wealthiest pay their fair share to avoid deep cuts in vital services.
Deborah Wagner, Brookeville