U.S. Senator Chris Van Hollen issued the following statement today after House Republicans made clear that their tax plan will end the state and local income tax deductions:
“Almost half of all Maryland taxpayers use the state and local tax deduction, and it allows state and local governments to provide vital services across the state. Republicans are trying to claim they’ve fixed this issue – but they’re still double taxing the income of millions of people in Maryland and across the country. Ending the state income tax deduction for hardworking families in order to give a massive tax giveaway to big corporations and the very wealthy is sadly par for the course in this Republican tax plan. We will fight it tooth and nail.”
Income taxes make up the largest part of the state and local tax deduction. According to the IRS Statistics of Income data for 2015, 60 percent of the total amount deducted nationally for taxes paid is due to state and local income taxes. In Maryland, income taxes comprise 71 percent of the total amount deducted for taxes paid, while property taxes comprise 27 percent.