Senate Republicans met on Nov. 30 to try to gain support for a huge tax bill that they are trying to get signed. Even though Trump has been in office for almost a year now, this would still be the first legislative victory for his party. While this could be good and cut taxes for the Maryland residents, it could also end up increasing them, leaving people concerned, especially since Maryland is typically a liberal state.
The bill was passed by the Senate on Dec. 2 by a 51-49 vote will have a large impact on our country as it comes with lots of changes. One of the main changes of the bill is tax deductions as they doubled from $6,350 to $12,700 for a single person and $12,000 to $24,000 for a married person.
While the bill keeps the minimum tax rate, another change that comes with the bill is it will increase the exemption rate for citizens. As this was a big win for the Republican Party it continues to show the problems with the government as the estimated debt that will be added because of the government passing the bill is around $1.3 trillion. The new bill is also set to have all tax cuts expire all at the same time in 2025, which will leave the country with huge problems in 2024 as we will be voting for a new president while needing to reconstruct the tax laws. “Loser: The future president,” Forbes’ John Fritze said. “Whoever takes office in 2024 will have no easy task, as they will be greeted soon after by Fiscal Cliff 2.”
As this bill has a big effect on the country, it also will have a big impact on Maryland residents in particular. This new tax bill, which is projected to decreased taxes, potentially can increase or decrease the amount paid for around three million Maryland citizens. The main reason that Maryland is affected more than almost any other state from this bill is because Maryland has a higher share of residents who itemize their deductions than in any other state in the nation.
Within the state nearly 1.4 million people, which is around 45 percent of state filers, itemize their deductions. Even though this bill is projected to decrease taxes, some Democrats have claimed that not everyone would receive a cut under the proposals. According to one analysis on the house bill, about 800,000 Marylanders would face an increase. “The bill is not targeted at middle income, it’s targeted at the wealthy,” Maryland democratic Senator Ben Cardin said. “One thing is clear: The bill’s only going to get worse, and it’s going to get more expensive.”
The Senate is hoping that the tax bill will be voted on in the next week, which is leaving people in Maryland concerned about the bill as they are unsure what the true outcome will be. While some people believe it will turn out OK others like Christopher Meyer, a research analyst with the Maryland Center on Economic Policy believe it can only have a negative result. “This bill…will do lasting harm to many Maryland families,” Meyer said.