Over the weekend, the House of Delegates got busy and passed its own version of the tax plans. Perhaps the most useful article published on the topic is simply a summary of the differences between the House and Senate plans published by the Washington Post:
Another Washington Post article focused on the difficulty in reconciling the differences between the House and the Senate. To my unpracticed eye, the bills don't look that far apart. On the other hand, the Senate bill did only pass by one vote. Moreover, the House has yet to pass a bill on a slots referendum. (And some areas are squawking at the idea of becoming slots locations, including White Marsh reports the Examiner and Ocean Downs reports the Delmarva Daily Times.Personal income tax
SENATE: Adds brackets of 5 percent for single filers with taxable income above $150,000 and joint filers above $200,000; and 5.5 percent for all filers above $500,000. Increases personal exemption and exemption for dependents from $2,400 to $2,600.
HOUSE: Modifies brackets to include 5.25 percent for single filers with taxable income above $125,000 and joint filers above $175,000; 5.5 percent for single filers above $150,000 and joint filers above $200,000; and 5.75 percent for single filers above $200,000 and joint filers above $250,000. Alters $2,400 personal exemption and exemption for dependents to $600 to $3,200, depending upon income.
Corporate income tax
SENATE: Increases rate from 7 to 8 percent.
HOUSE: Increases rate from 7 to 8.75 percent.
Sales tax
SENATE: Increases rate from 5 to 6 percent; applies the tax to computer services and video arcades.
HOUSE: Increases rate from 5 to 6 percent; no expansion of the tax to additional services.
Hotel tax
SENATE: No change to the 5 percent rate.
HOUSE: Raises the rate from 5 to 7.5 percent.
Tobacco tax
SENATE: Raises tax on a pack of cigarettes from $1 to $2.
HOUSE: Same as Senate.
Vehicle titling tax
SENATE: Raises rate from 5 to 6 percent.
HOUSE: Same as Senate.
As in the Senate, Montgomery legislators played a critical role in reducing the top income tax rates, though many members of the delegation were apparently pressured into voting for the version that passed through threats to reduce spending on items near and dear to Montgomery's:
A "whip count" taken Friday night by House leaders showed that a majority of Montgomery's 24 delegates opposed the bill and that support in the chamber fell short of the 71 votes needed for its passage.
Nineteen members of Montgomery's all-Democratic delegation wound up voting for the bill, however. Only four, including Del. Brian J. Feldman, the chairman of Montgomery's House delegation, voted against the legislation. One delegation member was absent.
Some Montgomery lawmakers suggested that the shift was driven by an alternate proposal to balance the budget that was floated Saturday afternoon by House leaders. That plan withdrew $460 million in new transportation spending, a major priority for the Washington area.
The alternative also would have capped the income tax rate that county governments could impose on residents, a move that would have hit Montgomery particularly hard. Also absent from the plan was funding for the so-called geographic cost of education index, a formula designed to send additional dollars to counties, including Montgomery, where the cost of education is more expensive.
The Baltimore Sun also printed an article suggesting similarly that Montgomery House legislators were outfoxed on the income tax question.
