ANNAPOLIS, Md. — Gov. Larry Hogan said Tuesday that his administration will look for ways to mitigate any negative outcomes a major federal tax overhaul could have on Maryland residents, while Democrats said Maryland will be among the states hardest hit by the measure.
Hogan, speaking at a news conference in Hanover, said “there’s no question that we’re going to have to take a look at every aspect of the bill and how it impacts us, either positively or negatively.” The Republican governor noted that the comptroller’s office is studying how the measure will affect Maryland.
“It appears as if many people in Maryland will see their taxes go down, their federal taxes,” Hogan said in a response to a question about the bill, after outlining initiatives to ease traffic congestion in the Baltimore area. “Others may see their taxes go up, but we’re going to analyze the whole thing, and if there are people that are negatively impacted by it, we’re going to try to look at … things we can do at the state level to try to mitigate some of the problems it may have caused.”
The tax bill backed by President Donald Trump and Republican lawmakers would impose a $10,000 limit on the combined sum of property and state and local income taxes that a household could deduct. The $10,000 cap will help pay for corporate and personal tax cuts totaling $1.5 million over the next decade. Conservatives say unlimited state and local deductions amount to a subsidy for the wealthy in high-tax states. But many middle-class families in those states face disproportionately high housing costs and depend on deducting state and local taxes.
“It will raise taxes on hundreds of thousands of Marylanders,” said Sen. Richard Madaleno, a Montgomery County Democrat who is running for governor. “It cynically attacks states like our own that have invested in public services like good public education.”
Heading into a big election year in Maryland, Democrats are highlighting the measure and how it will affect Maryland.
“It is a massive windfall for very, very wealthy people and corporations on the backs of hard-working Marylanders and folks from around the country,” said Sen. Roger Manno, a Montgomery County Democrat who is running for Congress.
The measure passed the House on Tuesday, and the Senate was set to vote later in the evening to send the bill to Trump for his signature.
Rep. Andy Harris, Maryland’s only Republican congressman, said the bill will put more money back in the pockets of Maryland residents and facilitate job creation.
“Lowering tax rates for small and family-owned businesses and for larger employers will encourage American businesses to reinvest in their own operations, increase their employees’ pay, and make the United States more competitive in the global marketplace,” Harris said in a statement.