By WMAL.com
Governor Hogan is using the historic $7.5 billion surplus generated by economic growth in the state to provide tax relief to seniors statewide. Under the plan released this week seniors in Maryland would receive a tax cut up to $1,750.
- The negotiation has been in the works for weeks as Governor Hogan’s office and state legislators have gone back-and-forth on the best use of the state’s $7.5 billion surplus.
- Breakdown:
- $1.86 billion: is allocated to tax reduction measures.
- $2.1 billion: will be stored in a “rainy day” fund.
- $800 million: will be used to aid in the payment of a planned overhaul of public schools.
- $700 million: will be used for several infrastructure plans across the state.
- Other tax reductions: The plan also includes a tax reduction for 80 percent of those under the age of 65, as well as rewards for businesses that hire people who are currently unemployed and the elimination of sales tax on essential household items.
- Gas tax: a portion of the surplus money was allocated toward the 30-day stoppage of the gas tax that went into effect on March 19.
- Bipartisan support: the bill has the support of both Republicans and Democrats. “This bipartisan agreement helps hundreds of thousands of seniors on fixed incomes who are struggling with inflation and puts families on a stronger footing as they buy necessities and pay for childcare or college,” said Democrat House Speaker Adrienne A. Jones.
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