The Maryland General Assembly passed a budget plan on Monday to resolve a $3.3 billion deficit with increased taxes and spending cuts, eventually achieving final approval after reconciling the differences between House and Senate proposals. As reported by WBALTV, the $67 billion budget, which includes $1.6 billion in tax and fee increases, has been the subject of contention largely due to a new 3% tech tax estimated to bring in $490 million, drawing criticism from Republican lawmakers such as Del. Lauren Arikan, who, in a statement detailed by FOX Baltimore, described the tech tax as a burden on all internet users and admonished the decision saying, "You could have cut something else than taxing everyone’s internet. It’s disgraceful, it’s embarrassing, and I’m livid I found out about it at 2 p.m. on Sine Die."
Additionally, the budget introduces new taxes and increases existing ones, including a $5 tire tax and a sales tax on vending machine purchases. The cannabis tax will rise from 9% to 12%, and sports betting will increase from 15% to 20%. This is coupled with raising the vehicle excise tax and implementing a 2% capital gains tax on those with an income over $350,000, according to an article by GazetteXtra. Gov. Wes Moore has signaled a willingness to sign the budget, noting. At the same time, he did not get everything he wanted. He felt it represented real progress.
Republican leaders have been vocal in their disdain for the budget measures, with the Senate Republican Caucus releasing statements, as reported by WBALTV, describing this as the largest tax hike in Maryland history. They criticized the decision to raise taxes instead of making more substantial cuts to balance the budget without digging into taxpayers' wallets. This sentiment is echoed by Chief Deputy House Minority Whip Wayne Hartman, who warned of a "freight train coming our way in the state of Maryland."
