Monday, November 19, 2007

Maryland lawmakers were working into the morning to pass legislation that includes these proposals:

¿ Overhaul personal income tax system: New top rates of 5 percent on taxable income of more than $150,000 for individuals and $200,000 for joint filers; 5.25 percent on more than $300,000 for individuals and $350,000 for joint filers; and 5.5 percent for more than $500,000 for all filers. Personal exemption increases by $800 for individuals under $100,000 and joint filers under $150,000; exemptions tier downward as income increases.

¿ Corporate income tax: Increases from 7 percent to 8.25 percent. Proposal calls for a study of "combined reporting," which advocates say would make it more difficult to shelter income in out-of-state subsidiaries.

¿ Sales tax: Increases from 5 to 6 percent. New rate is applied to computer services, which are now exempt.

¿ Titling tax on vehicles: Increases from 5 to 6 percent.

¿ Tobacco tax: Increases from $1 per of pack of cigarettes to $2.

¿ Slot machine gambling: Calls for a referendum next November on authorizing up to 15,000 machines at locations in Baltimore and Allegany, Anne Arundel, Cecil and Worcester counties.

¿ Spending reductions: Directs the governor to make about $550 million in cuts to next year's budget, including slowing the rate of increases in education spending.

¿ Transportation: Provides about $400 million a year in additional funds for system maintenance and new projects.

¿ Health care: Seeks to expand coverage to 100,000 adults through expanded Medicaid eligibility and subsidies to small businesses.