Maryland senators start voting this afternoon on Gov. Martin O’Malley’s deficit-reducing tax package, with major changes expected in some of the proposals.
The biggest change by the Budget and Taxation Committee is likely to be a reduction in O’Malley’s proposed 6.5 percent top rate for those making more than $500,000, bringing it down to 5.5 percent, according to Senate President Thomas V. Mike Miller Jr.
Montgomery County Executive Ike Leggett has proposed progressive rates of 5, 5.25 and 5.5 percent at various income levels, a full percentage point less than what O’Malley has asked for.
“I think that’s going to happen,” said House Majority Leader Kumar Barve, D-Montgomery, and chairman of the Ways and Means revenues subcommittee.
Under O’Malley’s plan, 80 percent of the revenue generated by the higher income taxes would come from Montgomery County residents, according to data from the state comptroller’s office.
Miller also said he expected the committee to reject O’Malley’s indexing of the gasoline tax, because gas prices are already so high. The price of regular gas jumped 14 cents to $3.01 nationwide last week, the Energy Information Administration reported Monday.
But the Senate president emphasized that the committee still must find the votes for these changes. Even with reductions in some of the tax increases, “it’s going to be tough” to pass the whole package, Miller said.
House Appropriations subcommittees are working this afternoon to find spending cuts that need to total $500 million to $600 million, House Speaker Michael Busch has said.
