The state of Maryland will drop the 6.25% tax rate on million dollar earners this year.
The State tax on million dollar earners was made back in 2008 to close the gap on the state’s 1.7 billion dollar budget gap,without cutting back.
Maryland is just one of many states with a tax on million dollar earners. New York, Hawaii,New Jersey,Wisconsin, and Oregon have all adopted the tax.
When the idea was made in 2007, it was said that there would only be a 3.7 tax increase on households.The Tax on million dollar earners helped tax payers pay less. There is still a 5.5% tax rate on those who earn over 500,000 per year.
Other states will also make changes to their tax policies in the new year. California’s tax rate will be dropped 35 points in 2011.North Carolina residence will not pay a 2% tax surcharge on incomes higher than 60,000, and 3% on earnings greater than 150,000