More than 100 business owners and advocates implored Maryland lawmakers to reject a proposal to expand the state sales tax to services, saying it would have a crippling effect on the local economy.
House Bill 1628, sponsored by Del. Eric Luedtke, would lower the state sales tax from 6% to 5% while expanding it to most services. He argues the proposal would make Maryland’s taxes more fair while also providing billions of dollars for public education reforms.
The measure would provide Maryland with $2.9 billion in additional revenue by fiscal 2025, according to an analysis by the nonpartisan Department of Legislative Services. Luedtke, who is also the majority leader in the House, originally estimated expanding the sales tax would generate $2.6 billion.
Overall, 119 people signed up to testify on the bill. Of that total, just seven testified in support.
“Nobody likes paying taxes,” Luedtke said during Monday’s marathon hearing in the House Ways and Means Committee. “I don’t like paying taxes, but taxes are the price we pay for living in a civilized society. I reject the notion that we can’t provide better services to our people, that we can figure out how to do it in the wealthiest state in the wealthiest country in the world.”