Advocates push plan to tax rich, corporations to fix budget

Envisioning a not-so-distant future when public school budgets are on the chopping block and essential workers like probation officers lack the resources to do their jobs, a handful of state lawmakers and a coalition of advocates on Monday introduced a plan they say would raise $1.6 billion to plug a significant impending state budget hole.

The new revenue — which would come mostly from expanded taxes on households earning more than $250,000 and on corporations — is designed to offset a multi-billion-dollar projected budget deficit that has so far dominated conversations in Annapolis during the annual 90-day legislative session, which began Jan. 10. It’s also aimed at helping lower earners by giving a tax break of up to a few hundred dollars to most Marylanders, reversing what the advocates say have been decades of inequitable tax burdens.

Proponents say the problem is urgent, though their solution as introduced is considered a long shot because of its scope and because key lawmakers say they don’t plan on pursuing any comprehensive revenue plans this year.

“Generating new revenues isn’t like turning on water at your kitchen sink. You don’t just turn on the faucet and more money flows out. Making these changes to our tax system will take one, two, even three years,” said Del. Julie Palakovich Carr, a Montgomery County Democrat who’s sponsoring the plan. “It’s essential that we enact tax reforms this session so that the money will be here when we most need it.”

The $63.1 billion budget that Democratic Gov. Wes Moore introduced last week would, if approved by lawmakers in the coming months, reduce some spending and pull from the state’s rainy day fund to solve an immediate shortfall and spend more on Democrats’ priorities for the fiscal year beginning July 1.