I was asked a question I didn’t know the answer to.
(In law school the shoe was assumed to be on the other foot: I was taught not to ask a question if I didn’t know the answer.)
My bill would provide tax relief to the working poor.
The earned income tax credit was enacted at the federal level when Gerald Ford was President. Maryland adopted its version in 1998.
For example, the state credit for a married couple with two children with an income of $25,000 is currently $1,147.
House Bill 331 would increase that amount by $266.
Why do we need this bill?
The last time we increased this credit was at the special session in 2007 when we raised the sales tax to 6%.
The taxes we are now considering would increase the sales tax on gas, impose a mandatory electricity fee of $24, and raise the current “flush tax” from $30 to $60. The projected annual cost is $147 for a family earning $25,000.
Since this would have a disproportionate effect on the working poor, I testified, we should increase the benefit.
Now it was time for questions.
Delegate Serafini asked, “Should we pass this bill if we don’t increase those taxes?”
I hadn’t thought about that.
Trying to come up with an answer as I responded, I said, “If that’s the case, I would not ask the committee to pass this bill.”
“I don’t know if the advocates following me will agree,” I added.
They did not disagree.