Moore testifies for expanding military retiree tax relief

ANNAPOLIS, Md. (AP) — Maryland Gov. Wes Moore testified Thursday in favor of his proposal to broaden state tax aid for navy retirees, marking the primary time a Maryland governor has testified for laws in individual earlier than a committee in additional than eight years.

At the moment, the state permits anybody receiving navy retirement, together with surviving spouses, to deduct the primary $5,000 from their taxable earnings if they’re underneath 55 and $15,000 if they’re 55 or older. The governor’s proposal would broaden the quantity and eradicate the age distinction.

The measure requires increasing the navy tax exemption to $25,000 of earnings in tax 12 months 2023 and $40,000 in tax 12 months 2024.

“These are people who’re beginning small companies,” mentioned Moore, a Democrat. “They’re serving on our boards. They’re bringing their abilities to firms which are driving Maryland’s economic system ahead. There additionally ensuring that their relations are staying right here as nicely.”

Moore mentioned Maryland must be aggressive with neighboring states that don’t tax veterans’ retirement earnings as a lot as Maryland. The governor famous that Virginia just lately elevated its exemption for navy retirees to $40,000 beginning in 2025.

“As I’ve mentioned earlier than, I refuse to let this state be a farm crew for different states,” mentioned Moore, who was a paratrooper with the U.S. Military’s 82nd Airborne and served in Afghanistan.

About 33,300 navy retirees could be eligible underneath the invoice, in accordance with an estimate by state analysts.

The governor included about $33 million in his $63.1 billion price range proposal for the subsequent fiscal 12 months for the proposal.

Moore’s testimony earlier than the Home Methods and Means Committee was the primary time a Maryland governor testified on a invoice favored by the chief government in additional than eight years. Moore’s predecessor, Republican Gov. Larry Hogan, by no means opted to testify on laws earlier than the Basic Meeting, which is managed by Democrats.

Del. Vanessa Atterbeary, a Democrat who chairs the committee, thanked Moore for showing earlier than the panel and “exhibiting and demonstrating that you’re going to be a associate with this legislature.”

“It means loads,” Atterbeary mentioned.