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Thursday, January 16, 2020

Governor Hogan Announces More Than $1 Billion in Tax Relief for Maryland Retirees

Biggest Tax Reduction in Maryland in More Than Two Decades
Retirees with Maryland Income Up to $50,000 Would Pay No State Income Tax Whatsoever
Next Step in Fulfilling Commitment to Eliminate All Retirement Taxes in Maryland

ANNAPOLIS, MD—Governor Larry Hogan today announced a more than $1 billion tax relief proposal to make it more affordable for retirees to stay in Maryland. This legislation, which would lower taxes for more than 230,000 Marylanders, is the biggest tax reduction in Maryland in more than two decades.

“People who have been lifelong Marylanders and have contributed so much, and still have more to offer, are moving to other states for one reason—our state’s sky-high retirement taxes,” said Governor Hogan. “When I first ran for governor, I said that once we solved the budget crisis and turned our economy around I wanted to eventually reach the point where we could eliminate all retirement taxes just as other states have done. That is still our goal, and this tax cut is a major step toward achieving it.”

The Retirement Tax Reduction Act of 2020 will cut retirement taxes for Marylanders by more than $1 billion over five years. This legislation will eliminate all state tax on the first $50,000 of income for retirees making up to $100,000 in federally adjusted gross income. Retirees with Maryland income up to $50,000 will pay no state tax whatsoever in the state of Maryland. This tax reduction will be phased in over five years, beginning in FY22.

“This legislation will provide tax relief to 230,000 Marylanders, is the largest tax reduction in Maryland in more than two decades, and it will keep tens of thousands of Maryland retirees from being forced to flee our state,” the governor continued. “As long as I am governor, I will continue to fight to make it easier for Maryland families, small businesses, and retirees to stay in our state, and to make it easier for all Marylanders to keep more of their hard-earned money.”

Over the last five years, Governor Hogan has led an historic economic turnaround, with the state going from losing 100,000 jobs prior to taking office to gaining 140,000 jobs. More businesses are open and more people are working than ever before in the history of the state. The governor has already delivered $1.25 billion in tax, toll, and fee relief for hardworking families, retirees, and small businesses.

Despite this progress, a recent survey found that Maryland is the worst state for retirees, ranking near the bottom in affordability. Since taking office, Governor Hogan has taken numerous steps to fulfill his commitment to eliminate state income taxes on all retirement income.

In addition to today’s announcement, the governor has introduced the Hometown Heroes Act of 2020 to exempt law enforcement, fire, rescue, corrections, and emergency response personnel from state tax on all retirement income specific to their service in those professions. This is the fifth year that Governor Hogan has introduced legislation to eliminate state taxes on the retirement income of first responders. In 2017, the governor was proud to enact the Hometown Heroes benefit so that first responders can exempt the first $15,000 of their retirement income from state taxes. This year, he is again pushing to fully exempt all retirement income for these occupations and to lower the age of eligibility from 55 to 50.

The governor has also announced legislation to eliminate all state taxes on retirement income received as a result of military service. In 2015, the governor enacted legislation to increase the tax exemption on military retiree pensions from $5,000 to $10,000 for retirees 65 years or older, and in 2018, he again enacted legislation that increased the exemption by 50% to $15,000 and lowered the eligibility age to 55.

9 comments:

Anonymous said...

Too little too late and the next Governor will most likely be a tax and spend Democrat like the Rino that you are!

I plan to retire in the next five years, and in that time I can guarantee you that our property taxes will go up due to higher assessments, and higher local county taxes and fees.

You have been Governor for two terms now, and you haven't done squat but cow down to the democrats that have made this state one of the worst states to retire and live in per the Wall Street Journal, and Forbes.

As a result of the unfriendly business climate here, my sons were forced to leave here for better opportunities in both North and South Carolina. Some of our former Maryland companies have relocated down there.
Lower taxes and they don't tax Social Security and pensions.

I plan to go where the living is easier and the climate is warmer in the winter!

I am sick of Liberal Maryland!
If a conflict breaks out, I would rather live in a red state when the stuff hits the fan!

I've already remodeled and updated my home for this future move.

Anonymous said...

Some relief for Retirees, since he is getting a lot of pressure for acting like a Democrat. That does not change his colors back to RED, since he is still stealing from the Maryland State Retiree Fund that State Employees are mandated to contribute a percentage of each pay check. Also Hogan has / will not pay back the funds already stolen plus pay the interest that was lost from the theft. AFSCME and other Unions have allowed this to happen, so it is just as much the Unions fault since they put in these crooked Poltians.

Anonymous said...

Too late! My wife and I bought a house in The Villages last month. We move next week.

Anonymous said...

That comes to about $.91 for each retiree per year,starting two years from now lol, 5 bucks in 5 years...then what? Id guess sunset clause lol...rrrr thats enough time to get it voted out. The automatic gas tax increases will exceed that by a long shot. Makes ya wonder is he that stupid or being pompous with a smack in the face of those that supported him? So cruel.
The next phase, in 7 years...when most of us will be dead or unable to work at all, we'll finally get a break....not.

Anonymous said...

Save some money and then get robbed because we can't conceal carry. If this gov were a real conservative we would have had some movement toward being able to defend ourselves.

Anonymous said...

Unions don't have enough membership to "put in" any "Poltians" as you call them, good or bad

Anonymous said...

3;30 took the words right out of my mouth .ditto

Anonymous said...

Where tax revenue is lowered at one source it has to be increased at another.

Anonymous said...

Letter to the Editor

The City of Salisbury has available on their website the Campaign Finance Report for all candidates in the Nov. 5, 2019 city race.

I find it funny that Michele Gregory passed several bad checks from her campaign account.

"Jake Day for Maryland" new campaign account.

All of the reports can be found online at salisbury.md/campaign-financials-12-20-19

Here is the Link to Jake Day's Campaign Finance Report. I would like to see you post Jake's report so that we can all see who financed his campaign. I am shocked at how many so-called Republicans donated to his campaign. Another RINO, Dr. Mark Edney(Urologist) who served the previous 4 years as the Vice President of the Wicomico County Central Committee wrote a check to Jake Day for $125. That is one of the most disgusting donations that I saw.

Another shocker, well not really, is that Austin Whitehead and his father Darron Whitehead their slumlord company Whitehead Properties contributed nearly $1,000 to Jake's campaign.

Many of Jake Day's contributors were rental property owners who don't even live in the City. Look at all the family members from the Gillis - Gilkerson Klan that donated the maximum of $250 each to Jake's corrupt campaign. Jake Day, Jim Ireton and Barrie Tilghman made the families of Gillis - Gilkerson rich!

Please post Jake Day's Campaign Finance Report and let all of us dissect it one by one and expose Jake Day, his slumlord friends and the Slumlord industry for what it is, CORRUPTION!!

Jake Day reported his campaign had spent $58,070.61 on election-related events, advertising and materials. The remaining $979.39 balance in the account was moved to a separate account Jake Day for Maryland for future use. Here is the Link to Jake Day's report which can be downloaded in pdf.

And be sure to look at the clowns Jake had on the payroll!

https://salisbury.md/wp-content/uploads/2019/10/M-J.Day-10.29.19-FIN-RPT.pdf