Attorney General Frosh Joins Suit to Protect State Taxpayers from Increased Taxes Due to Limitations on State and Local Tax Deductions
Drastically Cutting SALT Deduction Could Cost Maryland Taxpayers Estimated $1.7 Billion in 2018 Alone;
New Federal Tax Law Targets and Will Disproportionately Harm Maryland, While Interfering with States’ Rights to Make Own Fiscal Decisions
BALTIMORE, MD – Maryland Attorney General Brian E. Frosh today joined a lawsuit to protect Maryland and its taxpayers from the drastic curtailment of the State and Local Tax (SALT) deduction. The lawsuit argues that the new SALT cap was enacted to target Maryland and similarly situated states, that it interferes with states’ rights to make their own fiscal decisions, and that it will disproportionately harm taxpayers in these states.
The 2017 federal tax law drastically reduced the deduction by capping it at $10,000. Maryland relies on state property and income taxes to fund a variety of critical services, including education, health care, public safety, and other priorities. More than 500,000 Marylanders will lose $6.5 billion in SALT deductions – an average of $11,800 per taxpayer. These changes will also have harmful collateral consequences for the State and its residents. With the decreased value of the property tax deduction, for example, many Marylanders will see decreases in the value of their homes. Maryland residents will have an incentive to move elsewhere, and attracting young families and skilled workers to the State will become more difficult, putting Maryland at a competitive disadvantage.
“Eliminating the SALT deduction will jack up taxes for more than half a million Marylanders,” said Attorney General Frosh. “It is an attack on state sovereignty. It will reduce funding for local law enforcement and for construction of infrastructure statewide, and it will cripple our ability to educate our kids.”
Read more in the full press release:http://www.marylandattorneygeneral.gov/press/2018/071718.pdf
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12 comments:
I thought the kids were being educated with GAMBLING taxes.... “It’s for the children....”
Another 1% crying that they have to pay more. Frosh does not care about the rest of us in MD that he raises taxes on to pay for his jollies. Frosh allows Democrat politians steal money from the State Employees Retirement Fund. Frosh, Democrats and the rogue so-called Republican Governor Hogan always looks out for themselves and not the seniors in MD.
Unfortunately, it seems to be a very trivial lawsuit. The Federal Government through the IRS can set limits on any deduction or tax credit, i.e., sales tax, mileage, interest (business or personal), standard deduction, etc.
Just because my property taxes exceed those paid by other citizens, and particularly other citizens in other states, does not equate to those citizens having to subsidize the high property taxes being assessed on my property by the County I live in and the State of Maryland. Those gravy days are over. Hopefully, it will cause the Voters in Maryland to bring pressure to bear on the politicians to decrease our property taxes and implement a more progressive means of taxation as a replacement.
In fact, the money that could be saved by not filing such a lawsuit would be a good starter.
Sounds like the rich are getting hosed.
we might not mind paying some taxes but the Democrats want to use all the money they can get their hands on and 20% more cause all they can do is SPEND SPEND SPEND how about they use their own money for awhile
"Drastically Cutting SALT Deduction Could Cost Maryland Taxpayers Estimated $1.7 Billion in 2018 Alone;"
Yes and that is money that we would rather be sucking out of your wallet for our wanton needs.
Why doesn't MD just lower taxes! Problem solved
Smart people with high SALT deductions are putting properties into LLCs and S corps and renting them back to them selves. A business can deduct the taxes/insurance/mortgage int./etc.
Since when has Maryland government care about how much the citizens are taxed. Slogan should be - if you can dream it we can tax it!
Frosh needs to be flushed.
WTF
And deny legislators lavish vacations by lowering taxes???
Frothing at the mouth, again! SS,DD!
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