For My Luxury Maryland Clientele, How Hard Did You Work To Get Where You Are?
Have you worked your whole life to finally make more than 100k a year. If so, you have to see what our current Governor has planned to award you for your life time of hard work. You may want to contact your State Senator and Delegate about this issue.
Governor O’Malley’s new budget will reduce the deductions of all Maryland residents who itemize and make more than $100,000. The largest impact will be on our Mortgage Interest Deduction.
Instead of introducing the proposal as a separate bill, where it would have a hearing at which the Maryland Association of Realtors could testify, the Governor is slipping it in the Budget Reconciliation and Financing Act, which means that there will be no hearing or testimony on this specific provision. This is as close as you can come to “Taxation without Representation.” Does that phrase sound familiar? It is only the main reason for the revolutionary war.
We are giving you the following help if you have a media outlet or are contacted about his proposal. If you are active in Social Media, this would be an excellent forum for you to let your clients and friends know of this proposal and how it will impact all hard working homeowners who have worked their whole life to finally achieve a good living. Read the following points and tell me and anyone for that matter that this is fair. Some times I have to ask, what is the point to work hard to achieve financial freedom? Seeing what is going on in politics in our own backyard makes me think, maybe I should not work and live on the government. I might live a much more stress free life and possibly a financially better life. “I and we have way to much pride for that though.”
1. The proposal to reduce deductions for Maryland taxpayers will disproportionately burden Maryland homeowners.
2. The two most important deductions for Maryland homeowners are the mortgage interest deduction and state and local property tax deduction.
3. Over 50% of Maryland taxpayers itemize the highest proportion in the country.
4. Maryland has the highest percentage of taxpayers, almost 38%, claiming the mortgage interest deduction.
5. The mortgage interest deduction and real estate taxes account for almost 70% of total deductions for Maryland taxpayers.
6. In 2008, almost 1.1 million Maryland taxpayers claimed the mortgage interest deduction.
7. That same year, over 1.1 million Maryland taxpayers deducted property taxes.
8. Real estate accounts for over 20% of Maryland’s gross state product.
9. Housing and real estate are one of the most heavily taxed sectors of the economy, and Maryland has one of the most aggressive real estate tax structures in the country.
10. Maryland property owners already carry a significant tax burden, contributing the majority of revenue to local jurisdictions as well as 4.6% of state tax revenues. The average percentage of state tax revenue from real estate nationally is only 1.8%.