ANNAPOLIS – Following the Board of Revenue Estimates’ announcement that Maryland’s budget surplus has climbed to a historic $7.5 billion, led by Republican Governor Larry Hogan, House Republicans today renewed their call for widespread tax relief for Marylanders.
Comptroller Peter Franchot reported Thursday, the Maryland Board of Revenue Estimates increased revenue projections for fiscal years 2022 and 2023 by $1.6 billion.
“That’s an historic amount. Maryland has never seen anything like this before,” Franchot said.
“Today’s incredible revenue estimates increase our already record surplus and reinforce the fact that Maryland continues to have one of the strongest recoveries in America,” Hogan said.
Hogan noted this is a “once-in-a-generation opportunity” to advance substantial tax relief for our families, small businesses, and retirees, as he eyes support for the Retirement Tax Elimination Act to eliminate retirement taxes for Marylanders.
“People across the country are being squeezed by surging inflation on everything from gas to groceries — Marylanders, especially our retirees, deserve and need this relief,” he said. “Now more than ever, we must come together to take bold, bipartisan action.”
“Marylanders need and deserve tax cuts right now,” said House Minority Leader Jason Buckel. “Inflation is at 7.9%, the highest in forty years. Gas prices are setting historic highs and are rising daily. Our citizens are struggling every day while politicians in Annapolis are sitting on a pot of taxpayer dollars, doling them out to their pet projects and special interests. The most important interest group in our eyes are Maryland’s taxpayers and we should give them their money back.
Perhaps a welcome relief for some, Hogan also announced the administration is working on an emergency suspension of the gas tax, to help with “pain at the pump.”
The current tax rate in Maryland for fuel is 37 cents per gallon.
Hogan cited “global uncertainty due to Russian aggression” and said he would also support ongoing efforts in the legislature to suspend automatic increases in the gas tax.
Speaker of the Maryland House of Delegates Adrienne A. Jones echoed that sentiment in a statement released, March 10, “Marylanders need help now, and we are standing together to provide that assistance to suspend the Maryland gas tax for 30 days.”
Last week, the House of Delegates passed the Democratic-sponsored tax relief package. Pegged as “family budget boosters”, the tax package in total would only save Marylanders $95.4 million — 1% of the 7.7 billion surplus.
“Maryland Democrats have tossed a few pennies to taxpayers and expect them to be grateful,” said House Minority Whip Haven Shoemaker. “This Marie Antoinette ‘let them eat cake’ approach is an insult to struggling families everywhere. With a $7.5 billion surplus, there is no way anyone in the General Assembly can honestly say we cannot afford broad-based tax relief for Marylanders.”
However support is being generated on both sides of aisle as Comptroller and Democratic candidate for governor, Peter Franchot endorsed a suspension of gas tax. “With gas prices skyrocketing at a time when Maryland families are already struggling to afford basic necessities, I am calling on the State to enact a three-month Maryland gas tax holiday and pass a second round of economic stimulus,” Franchot said in a tweet. “I also echo lawmakers around the country in calling on the federal government to halt the federal gas tax for three months.”
Heather Mizeur, Democratic candidate for Congress in Maryland’s First District, said she too agrees with Hogan. “Temporary suspension of the state gas tax is the right move at this moment of deep pain at the pump for working families. Similar action should be pursued at the federal level, with provisions requiring oil and gas companies to pass savings directly to consumers.”
Thursday evening, Franchot’s office released a statement after Hogan and legislative leaders reached an agreement. “I’m elated that less than three hours after I called on the governor and the Legislature to enact a gas tax holiday, they worked together at lightning speed to agree on a one-month holiday,” Franchot said. “This is how government should work: putting aside political differences to deliver immediate results for the people that we serve.”
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