Maryland needs to overhaul its approach to income taxes | READER COMMENTARY

Our Maryland Income tax system needs changes. One needed change would involve how retirement distributions including pensions, IRAs and 401(k)’s are taxed. For Pennsylvania residents, all these retirement distributions are 100% tax-free! I understand that Delaware offers similar tax benefits on retirement distributions. There are a number of Maryland retirees moving to states that either have no state income tax or offer generous tax benefits on retirement distributions.

Today, with the disappearance of traditional pensions, relief is needed (“Maryland Gov. Hogan wants to cut income tax for retirees, calling it the largest tax cut in two decades,” Jan. 16). Finally, with the increase in the standard deduction on federal taxes, fewer Marylanders can itemize. If you take the standard deduction on your federal return, Maryland requires you to take the standard deduction on the state return. Maryland needs to increase its standard deduction.

Finally, our tax rates are not progressive including the county and city “piggybacks.” Both of these tax rates need to be made more progressive so that higher income individuals pay at a higher rate then lower and middle-income taxpayers. I think you will agree some serious thought needs to be given to our Maryland income tax structure.

George Schlaffer, Baltimore

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