January 12th, 2018 by WCBC Radio
Today, U.S. Senator Chris Van Hollen led the Maryland Delegation in a letter to Governor Larry Hogan inquiring about the Governor’s plans to protect Marylanders from the impact of the Republican tax bill’s cap of the State and Local Tax deduction. Senator Van Hollen was joined in the letter by Senator Cardin and Congressmen Hoyer, Brown, Cummings, Delaney, Raskin, Ruppersberger, and Sarbanes. The group released the letter today at a roundtable held by Senator Van Hollen and Congressmen Hoyer and Brown that focused on hearing constituent and business concerns on the tax bill.
“We are writing to ask about your plans to respond to the double-taxation imposed by the new federal cap on the state and local tax deduction, and to offer our assistance as needed,” the Members wrote. “We understand that you are exploring ways to prevent increases in Maryland state income taxes due to the linkages between the state and federal tax code, but we would like to know if you plan to protect Marylanders from higher federal taxes as well.”
Additionally, the Members highlighted the specific impact this will have on Marylanders, writing, “According to the Institute on Taxation and Economic Policy, over 360,000 Maryland households will get a tax increase under the new tax law in 2019. Maryland is one of the states hit hardest by the new tax law, due in large part to the new $10,000 limit on the state and local tax deduction. According to the IRS, 46% of households in Maryland claim the state and local tax deduction, which is the largest share of any state in the country. The average state and local tax deduction in Maryland is $12,931 – well over the $10,000 limit.”
The group pointed to proactive measures other states are taking, describing the policies proposed by California, New Jersey, and New York. They close the letter stating that, “We stand ready to help in any way possible, and look forward to hearing your plans to respond.”
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