Small business owners: It’s your turn to speak out. How will the Maryland state income tax hike affect you?
The Maryland General Assembly in May passed a tax plan that would impose an increase in the income tax rate for high-income Marylanders, and Montgomery County residents may shoulder the share of that burden, according to a Gazette report.
The increase will affect single filers making an adjustable gross income of $100,000 or more, and couples claiming more than $150,000—meaning that more than 93,500 of Montgomery County’s annual returns annual fall under the hike.
“Of the $154.7 million in expected additional annual revenue, $62.9 million or 40.7 percent will come from Montgomery County residents,” the report stated. “However, only an additional $10.2 million in state income tax revenue will come back to the county.”
The Maryland Chamber of Commerce has likened the hike to an attack on small business, according to Kathy Snyder, the organization's president and chief executive officer.
"A lot of small business owners are going to be paying more in income taxes in a time when we are relying on these small businesses to come out of the recession," Snyder told The Gazette.
Some lawmakers believe the tax increase also ignores the cost of living for many families in Montgomery County.
“A family of four living on $150,000 in Baltimore County simply has a much easier time paying the bills than a similar family living in Montgomery County,” Del. Ariana Kelly (D-Dist. 16) of Bethesda told The Gazette.