Democrat-Run State Forced to Lower Taxes to Avoid Taxpayer Revolt – by Calvin Freiburger
Well, this is awkward.
The federal tax reform package enacted in December by the Republican Congress and President Donald Trump is already working its magic putting more money in the pockets of millions of Americans, but has also ended the ability of liberal states to effectively hide the true cost of their policies by deducting state taxes from federal taxes. As a result, state-level Democrat politicians now face some tough choices.
The solution? In Maryland, at least, state Democrats see no alternative to cutting some taxes themselves.
The Baltimore Sun reports that more than 60 Maryland Democrats have proposed a number of policy changes that are hoped to prevent $1 billion in tax increases for 92 percent of the states’ taxpayers:
The biggest piece of the plan would allow state taxpayers to continue to take personal exemptions on their state taxes even though such exemptions are eliminated under the federal tax code. Unless state law on exemptions is uncoupled from federal policy, lawmakers said, Maryland taxpayers will shell out an additional $680 million in state and local taxes next year.
“It’s the biggest tax cut in the history of Maryland, as far as I’m concerned,” said Senate President Thomas V. Mike Miller, a Democrat who has served in the General Assembly since 1975.
The second piece of the plan uncouples Maryland’s estate tax from federal policy so that…