The stalemate on the $35 billion budget between the House of Delegates and Senate shifted somewhat on Thursday evening, as senators offered a compromise on taxes and the teacher pension shift to the counties.
Senate Budget and Taxation Committee Chairman Ed Kasemeyer, D-Howard, presented the potential compromise to the conference committee with House members after agreement was reached on less controversial items in the Budget Reconciliation and Financing Act. This compromise leaves rates alone for people making less than $100,000, and has steeper increases for people in higher income brackets.
The tax hike already passed by the Senate repealed a .25% tax cut given to everyone in 1997 and increased taxes to everyone making more than $3,000.
“The House message was that they didn’t want to tax anyone who makes under $100,000, and that’s what we decided to do,” Kasemeyer said.
Higher taxes on higher brackets
For single taxpayers making up to $100,000 a year, or joint taxpayers making up to $150,000, the tax rate would stay at 4.75%. But rates would significantly jump for others.
For single taxpayers making between $100,001 and $150,000, or joint taxpayers making $150,001 to $200,000, the tax rate would jump from 4.75% to 5.2%.
Single taxpayers making between $150,001 and $300,000 or joint taxpayers making $200,001 to $350,000 would go from paying 5% to 5.45%.
Every single taxpayer making $300,001 or more, or joint taxpayers making $350,001 or more would pay 5.75% in taxes – an increase of .5%.
Read more: http://marylandreporter.com/2012/04/05/senate-offers-compromise-on-taxes-pension-shift-to-lift-budget-stalemate-with-house/#ixzz1rqfIXhpe
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