The League of Women Voters of Maryland has always supported a progressive income tax as the first choice for revenue generation. While we applaud the Governor for trying to inject some progressivity into what was essentially a flat tax rate, his proposal does not go far enough. Under the Governor’s plan, most typical married filers earning less than $250,000 and singles earning less than $185,000 will see their incomes continue to be taxed at the 4.75% rate. This hardly reverses the cuts made in the late 1990’s which the League opposed and misses an opportunity to increase revenues in a progressive way. Returning to the 5% rate for most filers would generate significant income without needing to implement slot machine gambling which the League opposes. We support O’Malley’s proposal to increase the Earned Income Tax Credit and allow taxpayers to pay a lower rate on taxable earnings up to $15,000 for single filers and $22,500 for married couples. We would also support retaining the 4.75% rate for individuals making more than $15,000 and couples making more than $22,500 up to some multiplier (such as 300%) of the poverty rate. However, as stated above, the income tax cut of the late '90s, which many refer to as “the tax cut no one knows they got” must be reversed (while maintaining the progressive measures that were implemented and have been proposed) if we are going to truly resolve the structural deficit. Some lawmakers may argue that Maryland will have one of the highest income tax rates in the nation if the Governor’s plan is implemented. It is the League’s point of view that government should raise revenue on the ability-to-pay principle to create a system that results in equity and fairness to its residents. Currently, low- and moderate-income individuals are paying a much higher portion of their income on combined state and local taxes than are wealthy individuals. As we try to address this revenue crisis, the wealthiest state in the nation can do better, and we appreciate the efforts of lawmakers who are trying to improve the system.