Governor Larry Hogan held his 2020 State of the State Address, “The People’s Priorities”, Wednesday, February 5, where he outlined several improvements the state of Maryland has made since his inauguration in 2015 and and how he plans to remedy several problems that impact people throughout the state.
One of the issues Hogan said impacts many older Marylanders is being able to afford to live in the state on a fixed income.
“Nearly every day, I hear from folks who say, “I love the State of Maryland. I’ve spent my whole life here, and I don’t want to leave my kids and grandkids, but I just can’t afford to stay here on a fixed income,” Hogan said.
“We are losing many of our best citizens. People who have contributed so much and who still have more to offer are moving to other states for one reason: our state’s sky-high retirement taxes.
They tell me that Maryland’s retirement taxes are simply too high, and that they are moving to Delaware, Florida, the Carolinas, or any other state where they don’t take so much out of their retirement checks.
So we proposed the “Retirement Tax Reduction Act of 2020,” which will provide more than $1 billion in tax relief over five years.”
Under this plan, Hogan said retirees making $50,000 or less will pay no state income tax and all retirees earning less than $100,000 will see a tax reduction of no less than 50% and up to 100%.
According to Hogan, this is the largest tax reduction in Maryland in more than two decades.
“It will provide tax relief for more than 230,000 Marylanders and will help keep tens of thousands of Maryland retirees from fleeing our state,” hogan said.