Governor Wes Moore’s budget aims to address a $3 billion deficit with tax cuts for many and increases for high earners in Maryland
Maryland: Governor Wes Moore has put forward a budget plan that aims to tackle a projected $3 billion deficit. His proposal includes tax cuts for many residents while increasing taxes for high-income earners. The budget is set at $67.3 billion, which is a slight increase from last year.
Moore believes these changes will help stimulate the economy, especially as the state continues to recover from the pandemic. He mentioned that without action, the deficit could balloon to over $6 billion by 2030.
Maryland’s Budget Secretary, Helene Grady, stated that the plan would flip the deficit into a positive balance by the end of fiscal 2026. The budget also aims to reduce overall spending in the general fund.
Moore’s proposal includes $2 billion in cuts and efficiencies, along with using $500 million from the Rainy Day Fund. This leaves a $1 billion deficit that will be addressed through changes in the tax code.
He emphasized that working Marylanders are already contributing enough, which is why two-thirds of residents will see a tax cut. The plan also suggests cutting the corporate tax rate to attract businesses.
While many Democrats in the legislature support the budget, some Republicans are concerned about the tax increases. They argue that these could drive families out of the state, especially those who can afford to relocate.
Moore’s budget also includes funding for transportation projects and aims to improve the state’s infrastructure. However, there are proposed cuts to services for people with disabilities, which have raised concerns among advocacy groups.
Overall, Moore’s budget is a mix of tax relief for many and increased taxes for the wealthy, all aimed at fostering economic growth and addressing the state’s financial challenges.
