Bill Positions

Bill Number: HB 10

Bill Title: Teacher and Employee Pension Sustainability and Solvency Trust Fund

Bill Sponsor(s): Delegate Manno

Subject: Budget & Taxation

Committee: APP

Bill Summary: This bill would remove the sunset provision on the millionaires' income tax bracket and impose combined reporting for corporations, effective for taxable years beginning after December 31, 2010. Proceeds from those tax changes would be directed to fund state employee and teachers' pensions.

History: Legislation was enacted in 2008 that imposed a .75% additional tax on individuals with taxable income over $1 million for taxable years 2008, 2009 and 2010.

Chamber Position: Oppose

Position Summary: Extending the millionaires' income tax bracket would exacerbate Maryland's non-competitive income tax structure that falls disproportionately on small business owners. Instituting combined reporting would cause huge shifts in tax liabilities among Maryland businesses engaged in interstate commerce. Both changes are ill-advised during the depths of a recession, and while the Maryland Business Tax Reform Commission is evaluating the state's business tax structure. Excessive levels of public employee fringe benefits should not be funded through these mechanisms.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff:Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.