Annapolis, Md. – Yesterday, Delegate Susan Krebs (Carroll) with the support of House Republicans filed two bills aimed to reduce and repeal Maryland’s death taxes. Maryland is one of just two states with both an inheritance and estate tax, with Maryland’s $1 million exemption being one of the lowest in the country.
“Under current Maryland laws, families can be financially crippled by the sudden death of a family member – having to sell assets to pay Maryland’s exceptionally high death taxes,” said Delegate Susan Krebs (Carroll), lead sponsor of the bills. “Maryland’s estate taxes place an egregious burden on working families, small businesses and family farms.”
The first bill, designated as the Republican’s most favored option, would completely eliminate Maryland’s estate taxes. The second option, also supported by some Democrats, would realign Maryland’s estate tax with the Federal estate tax and raise the exemption from $1 million to $5.25 million.
According to IRS data, Maryland has lost more than $7 billion in adjusted gross income (AGI) as citizens have migrated to states such as Florida, North Carolina, Virginia, Pennsylvania and West Virginia with more favorable tax climates. High death taxes coupled with nearly 80 tax, fee and toll increases under the O’Malley/Brown Administration have made Maryland one of the most expensive states to live, work, raise a family, start a business, and leave a secure future to their heirs.
“We are glad to see our Democratic colleagues coming around on this issue and finally realizing that Maryland’s tax climate is driving citizens and their resources out of this state. My Republican colleagues and I have supported the reduction and elimination of Maryland’s death taxes for the past ten sessions,” said Delegate Susan Krebs, lead sponsor of the bills. “While we believe in the complete elimination of death taxes, we will support any reduction that alleviates the crippling tax burden placed on Maryland’s citizens.”