By Raquel Guillory, Director of Communications
After a productive Special Session, this morning, Governor O’Malley and the Presiding Officers signed a fiscally responsible budget into law that will support job creation and move us forward with a balanced approach. The budget is balanced with spending cuts, position reductions, modern investments and balanced revenues.
In analyzing the balanced revenues, we wanted to share this new report from the Institute on Taxation and Economy Policy.
Here are the key facts:
- 54 percent of the income tax revenue raised by SB1302 would come from the wealthiest 1 percent of state taxpayers—a group with an average income of nearly $1.6 million per year.
- 87 percent of the revenue would come from the top 5 percent of taxpayers.
- The changes in families’ income tax bills—even at the top of the income distribution—would be very modest. After considering the “federal offset” effect, the tax increase faced by the top 1 percent of taxpayers would equal just 0.16 percent of their total household income, and taxpayers outside of the top 1 percent would face an even smaller increase.
Also, check out our Chief of Staff’s testimony on how only 13% of Marylanders will face an income tax increase in 2012.