Bill Positions

Bill Number: SB 913

Bill Title: Income Tax - Surcharge - Extension

Bill Sponsor(s): Sen. Jones, et al.

Subject: Budget & Taxation

Committee: SRU

Bill Summary: This bill would have extended the "millionaires'" income tax bracket for 4 additional years, through taxable year 2014.

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. In 2010 SB 913 died in the Budget & Taxation Committee without a vote.

Chamber Position: Oppose

Position Summary: The Tax Foundation reports that Maryland has the 6th highest effective marginal state and local income tax rate in the country. According to the Foundation, Maryland’s top effective tax rate of 9.23% is far above all of our neighboring states (D.C. 8.5%; DE 7.11%; WV 6.5%; VA 5.75%; PA 4.32%). The tax has failed to make its estimated yield as the number of individuals filing with $1 million of income dropped by 30% for tax year 2008. This tax falls disproportionately on small business owners, who need to reinvest funds into their companies to create jobs. This tax should be allowed to lapse, as promised, so that Maryland can better compete for and retain jobs in this state.

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.