A Simple, Inexpensive Way for Maryland to Protect Certain Low-Income Workers from Tax Increases

Publication Date: October 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Nicholas Johnson; Jason A. Levitis

Research Area: Banking and finance

Type: Report

Coverage: Maryland

Abstract:

Closing Maryland's budget shortfall will require significant tax increases, including some that will have a disproportionate impact on the state’s lowest-income workers.  Governor O'Malley's proposal, for example, relies heavily on increases in the sales tax, tobacco tax, vehicle titling tax, and gambling revenues, all of which would hit low-income families much harder than middle- and upper-income Marylanders.  In combination, these tax increases could cost a low-income person or family several hundred dollars. Fortunately, there is a simple and inexpensive means to reach these taxpayers.