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We all should be "Mad as Hell" again

bs md house budget 20180322What's that you say?”
“Come again?”
“I can't hearrrrr youuuuu!”
That is, in essence, what our state legislators have said to taxpayers in the state of Maryland. Basically, their message is: I can't hear you, and even if I did, I don't really care!
As previously mentioned in this column, the recently-released federal tax plan hits the taxpayers of high-taxed states such as Maryland particularly hard. It is estimated that, as a result of the federal tax plan, Maryland taxpayers will see an increase of approximately $400 million in state taxes owed for the 2018 tax year.
What to do, what to do, what to do? Well, the state legislature has apparently decided to spend it and not return it to the taxpayers who, if nothing is done, will see an associated increase in their state tax bill come April 15, 2019.
Using the 2014 Personal Statistics of Income from the Comptroller's table for itemized deductions, the average increase in state and local returns for Marylanders with an adjusted gross income of $150,000 or less would average about $1000 in additional state tax per return.

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Officials still struggling to see how federal tax cuts will affect Montgomery County

  • Published in Local

ROCKVILLE — When County finance officials arrived Monday to a pre-scheduled briefing with the Montgomery County Council on the effects the recently-passed federal tax cuts will have on the County, the analysis they provided to the Council was sobering: they don’t know what the effects will be. 

Monday’s briefing, which brought together legislative staff, finance officials and economists to meet with the County Council, came on the heels of the release of a report by the state comptroller on the Tax Cuts and Jobs Act passed in December. While the session was meant as a briefing to the Council on the potential impact of the tax cuts – which already have resulted in a $120 million budget shortfall for the current fiscal year – after less than three months under the overhauled tax code, it is still too early to tell what the effect will be on the County and state.

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Redistributing the wealth the old-fashioned Donald Trump way…

Congressman Jamie Raskin (D).  PHOTO BY PAUL K. SCHWARTZRep. Jamie Raskin (D).     PHOTO BY PAUL K. SCHWARTZWhenever a Democratic administration attempts to raise the tax rate on the ultra-wealthy among us in an attempt to get them to pay their fair share of the tax burden you will inevitably hear the cries of “redistribution of wealth,” followed by the ultimate buzz word, “socialism.”
Well, the recently-enacted Republican federal tax plan does exactly that, it redistributes wealth. HOWEVER, it does so in a new and innovative way by shifting financial resources from the highly-taxed, so-called “blue” states such as Maryland, New York, Connecticut, California, and New Jersey to the so-called “red” states such as Mississippi, Louisiana, and Alabama to name just a few.
An individual in Mississippi who ordinarily takes the standard deduction on his federal return will see that deduction rise from the first $12,000 to the first $24,000. Big windfall.
In Maryland, an individual who ordinarily itemizes (because in such a highly-taxed state, state and local taxes are a major item to deduct), those middle class deductions, according to the federal tax plan, are either no longer allowed or significantly capped. Disaster!

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“Ease the Burden”

  • Published in Local

Local leaders look to mitigate effects of federal tax plan

Local leaders are bracing for the impact of the Tax Cuts and Jobs Act, which could hit County residents hard by eliminating a useful deduction for high tax states and cities.

On Wednesday both the House and Senate passed the long-awaited tax bill, which provides for $1.5 trillion in federal tax cuts and temporarily the top income tax rate from 39.6 percent to 37 percent. The bill’s personal income tax cuts were written to expire in some years to meet requirements imposed by Senate rules, while cuts to the nation's corporate tax rate are permanent.

“This is one of the most important pieces of legislation that Congress has passed in decades to help the American worker, to help grow the American economy,” said House Speaker Paul Ryan (R-Wisc), who has been pushing for massive tax cuts for the majority of his political career. “This is profound change, and this is change that is going to put our country on the right path.”

While many Americans’ taxes will be decreased, a provision in the bill that caps property tax deductions at $10,000 has become an issue for residents in places with high property taxes according to elected leaders.

Montgomery County Council member Roger Berliner (D-1) wrote a letter urging Montgomery County Chief Administrative Officer Timothy Firestine to allow residents to prepay property taxes in order take advantage of the current, and more favorable tax deduction before the new tax cut takes effect.

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