The Senate voted to accede to the slots proposal adopted by the House of Delegates. The conference committee between the two houses has also agreed on a compromise on the income tax hike:
The compromise plan would make the individual income tax more progressive, would increase the sales and vehicle titling tax rates from 5 percent to 6 percent, and would increase the corporate income tax rate from 7 percent to 8.25 percent.The General Assembly also agreed to extend the sales tax to computer services to generate $200 million per year but set the new tax to expire after five years. Finally, legislators asked Gov. Martin O'Malley to cut his proposed budget by $550 million.
In a compromise between the chambers, legislative leaders agreed to adding three new income tax brackets for high-earners, changing a tax structure in which most filers qualify for the top rate of 4.75 percent.
Under the proposed new structure, individuals would pay 5 percent on taxable income above $150,000 a year, and couples would pay that rate on taxable income over $200,000 a year. A 5.25 percent bracket would apply to income greater than $300,000 a year for individuals, and $350,000 a year for couples. All income above $500,000 a year would be taxed at 5.5 percent.
The Baltimore Sun has a photo montage if you want to make an Olympic moment out of the closure of the special session.
Update
As of very early in the morning, the Republicans were filibustering successfully the tax bill in the Senate. They were joined by five Democrats: Sens. Brochin, Della, Forehand, Klausmeier, and Stone. The real surprise on the list to me is Montgomery Sen. Jennie Forehand (D-17), an affable woman who represents a safe Democratic district and isn't known for allying with the Republicans. Baltimore City Sen. George Della (D-46) also represents a safe Democratic district but has a poor relationship with Senate President Mike Miller and is probably enjoying the chance to make his life more difficult.
Update II
The tax package passed at 2:36am this morning.
