In addition to the proposals announced yesterday, Gov. Martin O'Malley's budget plan includes components that have been previously announced or that will be presented soon. This is what has been proposed, based on what O'Malley (D) has told lawmakers and said publicly:[an error occurred while processing this directive]
Sales tax: Raise the rate from 5 to 6 percent. Apply the tax to a limited number of services that are exempt.
Income tax: Create two upper-end brackets that will increase taxes on about 3.7 percent of filers, according to O'Malley's office. Apply lower marginal rates to lower brackets, creating a modest cut for most filers. Expand the Earned Income Tax Credit.
Tobacco tax: Raise the tax on cigarettes from $1 a pack to $2.
Property tax Roll back the rate over three years from 11.2 cents per $100 in assessed value to 8.2 cents.
Close corporate loopholes: Close a "controlling interest" loophole that allows some businesses to avoid transfer taxes on property sales. Adopt "combined reporting," which could make it more difficult for corporations to shield income in out-of-state subsidiaries.
Slots: Legalize an unspecified number of slot machines to generate more than $500 million a year in revenue and to help the horse racing industry.