LANDOVER, MD (September 26, 2007) – Governor Martin O’Malley and Lieutenant Governor Brown today joined with Department of Aging Secretary Gloria Lawlah to talk to seniors living at the Victory House, an assisted living facility in Landover, Maryland about their proposed budget solution and its impact on seniors.
“During this past week, we have announced a number of proposals to make Maryland’s tax structure fairer for working families and those living on fixed incomes,” said Governor O’Malley. “Today, we are announcing new initiatives to provide tax relief for the most the vulnerable of our neighbors and taking steps to improve the quality, access, and affordability of healthcare in our State.”
During the discussion, Governor O’Malley outlined his plan to provide relief to low-income households and those living on fixed-incomes. The proposed tax relief would help those individuals, such as adults without children, single parents, and senior citizens, who live on fixed incomes.
In addition to proposals already announced by the Governor to reform Maryland’s income tax structure, reduce the state property tax, expand the refundable Earned Income Tax Credit for working families to twenty-five percent (25%), and establish an annual sales tax holiday on school clothes and energy efficient appliances, the plan announced today would provide increased tax relief by:
O’Malley also outlined plans to increase the State’s tobacco tax by $1 to discourage smoking and invest in making healthcare coverage more affordable for more Marylanders – including small and family-owned business. In addition, Governor O’Malley outlined plans to provide incentives and support for small businesses that offer insurance to employees, and reduce the State’s $800 million in uncompensated care and the number of uninsured people by reforming Medicaid limits.
“Coming up with comprehensive healthcare reform is essential for Marylanders who are uninsured and underinsured,” Governor O’Malley said. “Increasing the tobacco tax by $1 will help the State invest in healthcare coverage and make it more affordable for more Marylanders.”
“We need to act now to get Maryland back on the path to progress,” Lt. Governor Brown said. “Governor O’Malley and I look forward to working with the General Assembly to pass a long-term budget solution that provides relief to low-income families and seniors and makes quality healthcare more affordable.”
Under Governor O’Malley’s plan, a $1 increase would be applied to the State’s Tobacco Tax to invest in healthcare coverage making insurance more affordable for more Marylanders. According to the Maryland Healthcare Commission, 87% of Marylanders living with a working adult are uninsured and only 40% of small businesses in Maryland offer insurance.
Under his proposal, Governor O’Malley would provide incentives and support for small businesses that offer insurance to employees. The plan would also reduce the State’s $800 million in uncompensated care and the number of uninsured people by reforming Medicaid limits.
“I applaud Governor O'Malley for his efforts to provide funding assistance and relief to low-income households and seniors on fixed incomes, while the State is faced with a budget crunch,” said Gloria Lawlah, Secretary of the Maryland Department of Aging. “His commitment to improving the quality of life for all senior adults will help move our State forward as we face the challenge of serving Maryland's current and future senior population.”
Today’s announcement marks the sixth by O’Malley in as many days, as he rolls out his solution to Maryland’s $1.7 billion structural deficit. Previously, the Governor has announced plans to reform Maryland’s income tax structure – making it more progressive for working families, cut Maryland’s property tax rate by 3 cents, expand Maryland’s sales tax, close corporate loopholes, increase the corporate income tax by 1%, and recapture slots revenue.