Plan closes long-predicted deficit by modernizing tax code, prioritizing pro-growth investments

Governor Wes Moore’s responsible, forward-thinking budget proposal closes Maryland’s long-predicted structural deficit while providing tax cuts to nearly ? of Marylanders, preserving record funding for education, and making targeted investments to grow our economy. 

What to know about Gov. Moore’s budget proposal:

Gov. Moore wants to cut taxes for working and middle class Marylanders.

• Nearly ? of Marylanders will get a tax cut under Gov. Moore’s tax reform plan, while 82% will either see their taxes go down or no change at all.
  
• Gov. Moore’s proposal seeks to make the tax code simpler and more fair by making sure higher earners pay a closer portion of their total income compared to lower earners. The vast majority of new revenues will be paid for by the top 1% of Marylanders who make more than $700,000 a year.
• For the third year in a row, the Moore-Miller Administration is not raising the sales tax or property tax. 

Gov. Moore is prioritizing pro-growth investments that’ll make Maryland’s economy stronger, more stable, and more competitive – at a time when Donald Trump is making draconian cuts that threaten Marylanders’ lives and livelihoods. 

• Under Gov. Moore’s plan, Maryland will increase investments in top priorities like education, public safety, and workforce and business growth. Maryland will continue making smart investments that’ll strengthen our economy for years to come, including an additional $550 million in K-12 education spending, record funding for public safety, and targeted spending in emerging industries such as defense contracting, quantum computing, and life sciences.
• Gov. Moore’s plan lowers the corporate tax rate to make Maryland more competitive and business-friendly, all while closing loopholes that allow some multi-state businesses to avoid paying their fair share to Maryland.
• Where necessary, the budget proposal reduces spending for programs that are underutilized, underperforming, or growing at unsustainable rates. By balancing $1 billion in spending with $2 billion in cuts, Gov. Moore is making tough, responsible decisions that were avoided by the previous administration.

Gov. Moore is committed to closing the $3 billion structural deficit inherited from the previous administration. 

• The Moore-Miller Administration did not create Maryland’s budget hole, but it’s committed to fixing it. Despite expert warnings of a structural deficit as early as 2017, the previous administration spent down Maryland’s cash balances and failed to provide long-term solutions to the state’s structural deficit.
• During the COVID-19 pandemic, the federal government provided Maryland – like every other state in the nation – with historic amounts of one-time stimulus money. Maryland’s temporary surplus in 2022 was not structural; it was a sugar high.
• Gov. Moore is committed to continuing his track record of proposing responsible, sustainable budgets. In partnership with the General Assembly, the Moore-Miller Administration has passed two consecutive state budgets smaller than the previous year – a feat that hasn’t happened in nearly a decade.