A bipartisan plan to avoid federal spending reductions and tax increases that would hit Maryland especially hard won final approval Tuesday night in the House of Representatives even as outside groups warned that the bill would simply delay difficult decisions for a few months.
Regardless of whether the president and Congress strike a deal or take the nation headfirst over the "fiscal cliff," federal taxes for some Marylanders will increase next year — and under some scenarios the pain could be worse than in other states.
For the first time since a recession gripped the country in 2008, Maryland is approaching a General Assembly session with good news about its operating budget: Neither tax increases nor drastic budget cuts are likely to be needed.
High-earners in Maryland will feel a financial pinch beginning Sunday, when employers boost paycheck withholdings to accommodate higher income tax rates. The tax increase is one of hundreds of new laws taking effect with the July 1 start of the state's fiscal year.
The General Assembly's speedy embrace of Gov. Martin O'Malley's income tax increases this week cleaned up a political mess in Annapolis, but the rate hikes could come back to haunt the Democrat if he seeks national office when his time in the governor's mansion is up.
A carefully choreographed strategy to raise state income taxes to stave off so-called Doomsday budget cuts faces a challenge in the General Assembly after several Democrats defied party leaders with a proposal to raise the sales tax instead.
A Maryland family making more than $175,000 will pay at least $254 more in income taxes this year under a revenue-raising plan the Maryland General Assembly is expected to take up when they convene for special session on Monday.
Pushing legislative brinkmanship to its limits, the General Assembly will go into the last scheduled day of its 90-day session Monday without an agreement on the one thing it must get done under Maryland's Constitution: pass a balanced budget.
A plan adopted by the Maryland Senate may be unique among the 50 states in how it would handle income taxes for high earners, and it would violate the principle that a dollar earned should not cost more than a dollar in taxes.
The state Senate voted Thursday to significantly raise taxes on Marylanders earning half a million dollars or more — prompting complaints that liberals were bent on launching class warfare in the state.
Determined to avoid deep cuts to state spending, a Senate committee voted Thursday to approve an increase of roughly one-quarter of a percent in Maryland's income tax rate and to shift part of the state's teacher pension costs to the counties, though at a more gradual pace than proposed by Gov. Martin O'Malley.
Gov. Martin O'Malley issued a rousing call for an aggressive program to invest in jobs and honor "human dignity" for families – whether the parents are gay or straight – in an upbeat State of the State Address Wednesday.
County executives, education advocates, Maryland hospitals and Republican leaders all railed against Gov. Martin O'Malley's proposed budget Wednesday as critics began making their case against the $36 billion spending plan
Gov. Martin O'Malley on Wednesday defended his proposal to ask 20 percent of Marylanders to pay more income taxes, calling his budget plan "a balanced approach" that preserves funding for priorities such as education