Tue March 20, 2012
Fewer Taxpayers Affected by Proposed Tax Hike in Maryland
ANNAPOLIS, Md. (AP) - Far fewer taxpayers would be affected by an income tax increase under a House panel's plan then one approved by the state Senate.
The House Ways and Means Committee on Monday voted to raise taxes on single filers who make more than $100,000. Their rate would go from 4.75 percent to 5 percent. Joint filers would have to earn more than $150,000 for their rate to go up that much.
The House committee also did away with a 5.75 percent "super bracket" for people who make more than $500,000. It would assess the top rate from the first dollar.
To make up for the drop in revenue under the changes, the House will phase in a teacher pension shift over three years instead of four and make deeper cuts.