January 22, 2025
Legislation raises $1.6 billion to address deficit, state needs
Plan goes beyond Moore budget proposal
ANNAPOLIS – Sen. Shelly Hettleman and Del. Julie Palakovich Carr today announced the Fair Share Maryland legislation, a proposal that would raise at least $1.6 billion in general fund revenues to address the state’s nearly $3 billion deficit. Elements of the Fair Share for Maryland Act of 2025 are also included in Gov. Wes Moore’s FY 2026 proposed budget, including closing corporate tax loopholes and the addition of new upper income tax brackets for the state’s highest earners. These are common-sense measures that will raise considerable and durable income for the state.
“Gov. Wes Moore has proposed raising nearly $1 billion of new revenue while cutting taxes for Maryland working families. This is a great first step in addressing the state’s current budget gap,” said Kali Schumitz, Vice President for External Relations at the Maryland Center for Economic Policy. “But the Governor and the Maryland General Assembly need to do more to offset the proposed damaging cuts to public education, the child care scholarship program, and services for people with disabilities.”
“The proposed budget is a down payment on meeting the state’s obligations to its residents, but we should do more,” said Del. Julie Palakovich Carr, lead House sponsor of the Fair Share for Maryland Act. “Other elements of the Fair Share Maryland legislation, including worldwide combined reporting as passed by the House of Delegates last year and closing the LLC loophole — estimated to raise $745 million each year — would put Maryland closer to solving our long-term structural deficit.”
Last year, the House of Delegates passed a worldwide combined reporting provision as part of their tax package that was estimated to raise $517 million annually. However, it was stripped out in budget negotiations between the two chambers. The “water’s edge” version of the bill only raises an estimated $225 million. By failing to adopt the more comprehensive measure, this proposed budget is leaving hundreds of millions of dollars a year on the table, funding that would help fulfill the state’s commitments to the timely implementation of new programs and services.
“Our budget reflects our values and how we pay for that budget is also reflective of our values,” said Sen. Shelly Hettleman, lead Senate sponsor of the Fair Share for Maryland Act. “We have a tax system that’s unfair. It’s not fair when lower income folks are paying a higher percentage of their income on taxes than wealthier folks, when the richest 1% are not paying their fair share. And when corporations are not paying their fair share, hurting the small businesses in our communities that are. That’s where the Fair Share for Maryland Act comes in.”
“We appreciate the Governor’s commitment to funding the state’s child care scholarship program, totalling an investment of over $400 million in FY 2026,” said Christopher Cano, Political Director of SEIU 500, which represents childcare workers. “However, we are concerned about the ‘cost containment’ proposal to institute an enrollment cap and subsequent waitlist for the program starting in May 2025. Waitlists for child care scholarships will harm families by limiting access to this fundamentally important safety-net program and can upend child care arrangements.”
“Our governor has taken important steps to raise the revenue that our state needs but we need to do more to offset the cuts in the Governor’s budget for education, health care and child care subsidies while building a stronger state for everyone,” said Cherrish Vick, Secretary-Treasurer of AFSCME Maryland Council 3. “State workers have sacrificed, continuing our work and serving Marylanders even as we’ve forgone the raises we need to keep up on our bills and move our families forward. Now it’s time for others to contribute their fair share. I’m talking about the state’s wealthiest residents as well as the corporations who’ve dodged taxes for years.”
At a time when states are facing similar budget challenges due to depletion of COVID-era federal funding, Maryland is leading by proposing revenue measures that create a more just and equitable tax system, rather than relying solely on cuts to balance the budget.
The Fair Share Maryland plan is supported by the Fair Share Maryland Coalition, a group of more than 60 organizations working to create a more equitable tax system and ensure the state has the resources it needs for Maryland communities to thrive. More information at Fair Share Maryland’s website.