Maryland 2022 Regular Session

Maryland House Bill HB422

Introduced
1/19/22  

Caption

Working Marylanders Tax Relief Act of 2022

Impact

If enacted, HB 422 would impact the Maryland Tax Code by altering how the state's EITC is calculated. Notably, it establishes a pathway for residents to receive a greater refund based on their earned income credit, reflecting an effort to align state policy with the adjustments made at the federal level. This has the potential to significantly increase tax refunds for many families, stimulating economic activity and supporting state residents in need of financial support.

Summary

House Bill 422, titled the Working Marylanders Tax Relief Act of 2022, proposes modifications to the Maryland earned income tax credit (EITC) structure. Specifically, the bill aims to increase the percentage of the federal earned income tax credit that residents can use to determine their Maryland EITC refund. The intention is to provide additional tax relief to low- and moderate-income working families, thereby enhancing their financial stability and easing their tax burdens.

Contention

The bill has garnered both support and criticism. Proponents argue that expanding the EITC is a critical move towards reducing poverty and incentivizing work among low-income residents. However, opponents express concerns regarding the fiscal implications of these changes on state revenues and whether such expansions may inadvertently lead to increased dependency on tax credits rather than promoting sustained economic growth. Additionally, discussions highlight the need for careful consideration of funding these tax relief measures amid broader budgetary constraints.

Companion Bills

MD SB404

Crossfiled Working Marylanders Tax Relief Act of 2022

Previously Filed As

MD SB404

Working Marylanders Tax Relief Act of 2022

MD SB1992

Working Families Tax Relief Act of 2023

MD AB91

Income taxation: Loophole Closure and Small Business and Working Families Tax Relief Act of 2019.

MD SB552

Family Prosperity Act of 2023

MD HB547

Family Prosperity Act of 2023

MD SB391

Economic Development - More Jobs for Marylanders Program - Extension and Alterations

MD HB2927

All-Americans Tax Relief Act of 2025

MD HB337

Income Tax – Capital Gains, Dividends, and Foreign–Derived Intangible Income – Alterations (Investing in Marylanders Act of 2023)

MD HB1014

Fair Share for Maryland Act of 2025

MD SB859

Fair Share for Maryland Act of 2025

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