ANNAPOLIS, Md. — Maryland Gov. Wes Moore announced an agreement on a state budget framework with the state’s Democratic leadership Thursday, criticizing President Donald Trump’s tariffs and dramatic downsizing of the federal government while announcing tax increases and cuts to address a $3.3 billion state deficit for the next fiscal year.
The tax increases include a new 3% tax on information technology services, as well as a new income tax bracket for the state’s wealthiest residents
“We ’ve spoken to Marylanders at all income levels about this plan, and there is consensus that if a person is making over $750,000 a year, it is reasonable to ask them to give roughly $1,800 more to help us invest in the success of our state,” Moore, a Democrat, said.
The plans also include tax increases on gambling and cannabis, as well as a new 1% tax on capital gains for people with incomes over $350,000.
Moore and other leading lawmakers criticized the Republican president frequently at a news conference at the state Capitol. The governor pointed out that the ratings agency Moody’s recently noted that federal cuts pose a greater threat to Maryland than any other state.
“The president has launched a reckless trade war with our allies, including our largest trading partners, and those tariffs could mean over a $2 billion impact on our economy and directly harm our people,” Moore said,
He added that Trump dealt a further blow to the state last week by announcing plans to cancel relocating a new FBI headquarters in Maryland.
Republicans said it was wrong to blame the president for the state’s fiscal woes, because Maryland’s budget deficit existed long before Trump returned to office in January.
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