Maryland helped solve a budget crisis and get rid of an unpopular business tax on the computer industry with a simple solution-- ask the richest 6,000 households in the state making more than $1 million to pay more of their fair share in taxes. By raising the top income tax rate this past week to 6.5%, Maryland will raise an additional $328.5 million over the next three years.
This is part of a broader trend in Maryland over the last few years of converting what had been a flat tax rate of 4.75% on income over $3,000 into a code that progressively raises the rate as income rise. Last year, the state added a 5% rate on single filers earning more than $150,000 and a rate of 5.5% on those making more than $500,000.
Rising Tax Equity on the Chesapeake
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Rising Tax Equity on the Chesapeake
Progressive States, 4/17/08
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