In our ongoing coverage of the latest tax-related news for the state of Maryland, GSG is providing its latest Maryland Tax News Round Up for the month of March 2025.
Governor Moore Testifies in Support of the 2025 Budget Reconciliation and Financing Act
Governor Wes Moore testified before the Maryland House Appropriations and Ways and Means Committees in support of the Budget Reconciliation and Financing Act of 2025.
The bill is a key part of the Moore-Miller Administration’s plan to reform the tax code, address fiscal challenges, and invest in Maryland families. Joined by state budget officials, Moore emphasized that the legislation would provide a sustainable path forward while tackling the state’s financial shortfall.
The bill aims to stabilize Maryland’s finances by balancing budget reductions with new revenue measures. The administration views these changes as necessary to modernize the financial system and ensure long-term economic stability, though discussions on the bill’s potential impact continue. Read more here.
Maryland Taxes Tied to Stagnant Growth; Analysts Criticize Moore’s New Income Tax Plan
Governor Moore’s income tax plan is facing criticism from analysts who argue Maryland’s high tax burden contributes to slow economic growth.
The proposal eliminates itemized deductions, doubles the standard deduction, consolidates lower tax brackets, and introduces new brackets for earners making over $500,000 and $1 million. While the administration calls it a growth initiative, critics warn it may further hinder business expansion.
Pete Sepp of the National Taxpayers Union cautions that higher taxes on top earners could discourage investment and competitiveness. With a $3 billion budget shortfall, Moore’s plan seeks to close the gap through $2 billion in spending cuts and $1 billion in tax adjustments, but debate continues on its long-term economic effects. Read more here.
NFIB Rolls Out Digital and Radio Ads Opposing Small Business Tax Hikes
The National Federation of Independent Business (NFIB) has launched an ad campaign urging Maryland lawmakers to reject proposed tax increases.
Small business owners worry that higher taxes will hurt growth and job creation, particularly as they recover from economic challenges. NFIB Maryland State Director Mike O’Halloran argues that these tax hikes could make it harder for Main Street businesses to expand and reinvest.
The campaign pressures the Maryland General Assembly to find alternatives to balancing the budget without burdening small businesses. Advocates warn that increased taxes could slow job growth and local investment, and they will continue pushing for policies that support rather than hinder the state’s small business community. Read more here.
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