On January 30, 2025, Maryland Governor Wes Moore unveiled ambitious proposals aimed at reforming the state’s tax system. These measures include raising income tax rates on high-income households, increasing taxes on sports betting and cannabis sales, all part of his strategy to address Maryland’s projected $3 billion budget shortfall.
Moore's proposals were unveiled amid growing fiscal challenges, with state analysts warning of the worst financial outlook since the Great Recession. The budget crisis is exacerbated by stagnant economic growth, where rising costs associated with entitlement programs such as Medicaid have far outstripped available resources. To counteract this, Moore’s tax plan intends to raise nearly $1 billion, balancing it with about $2 billion cuts to planned spending.
A recent Washington Post-University of Maryland poll revealed broad support among Maryland voters for these tax increases. The poll found 60 percent of registered voters, including over half of those earning $200,000 or more, favor the proposed tax hikes on households earning over $500,000 annually. The governor emphasized these changes might largely affect households earning $750,000 or more.
Supporters like Elliot Peterson, a 30-year-old freelance stagehand, expressed enthusiasm for the tax increases, asserting, “The rich need to be taxed their fair share.” Yet, the proposals aren’t without their detractors. The tax increases aim to fund necessary services, yet there remain concerns about inviting wealth migration to states with lower tax burdens.
Among Moore's controversial ideas is the plan to double the tax rate on sports betting profits, raising it from 15 percent to 30 percent. The measure aims to curb betting excesses, reflecting the view of many voters who see such activities as non-essentials and endorse higher taxes on them.
Despite the overall support for Moore's budget strategies, certain proposed cuts are unpopular. The poll indicates significant opposition to cutting $111 million from the University System of Maryland and $200 million from budget allocations for developmental disabilities support. Such cuts are not only contentious but have spurred local organizations and individuals to speak out against the potential losses.
Barbette Thorne, 80, shared her frustration over proposed fees on grocery deliveries, saying, “People shouldn’t have to pay any more for delivery.” Thorne, who relies on these services due to health issues, noted the burden such fees would impose on elderly residents and those with disabilities.
Public opinion diverges on how Moore’s tax and fee adjustments will affect individuals. About 52 percent of respondents believe the changes will impact them significantly, with residents from areas like Prince George’s County expressing higher concerns compared to other regions.
Governor Moore has also endorsed enabling grocery stores to sell beer and wine, garnering support from about two-thirds of voters, particularly among those with higher incomes. This initiative seems to resonate with voters who are eager for improved offerings and conveniences from their local businesses.
Despite the divided opinions on specific tax and budget proposals, Moore’s overall job approval remains relatively steady, with 59 percent of voters having confidence in his leadership. Notably, over 60 percent rate him as “a strong leader,” and many also find him “honest and trustworthy.”
Addressing the pressing issues of affordable housing, which tops the concerns among voters, continues to be pivotal for Moore. Almost 25 percent identified housing as their primary worry, highlighting the intertwined relationship between tax reform and community welfare.
Maryland's budget and tax challenges stand as defining topics for the state’s future political and social climate. With voters remaining engaged through polls and public opinion about the Governor’s proposals, the eventual outcomes could shape Maryland’s economic blueprint for years to come. Moore’s decisions will likely influence aspects from funding education to ensuring sustainable public services.
The poll, conducted by the Washington Post and the University of Maryland's Center for Democracy and Civic Engagement, surveyed 1,002 registered voters, ensuring diverse representation and accuracy. The results come with a margin of error of plus or minus 3.3 percentage points, providing insight and reflecting Maryland's current political and social attitudes.