Democratic House leaders in Maryland’s General Assembly introduced a package of tax relief bills aimed at making everyday products like diapers, toothbrushes, and car seats more affordable.
Dubbed “family budget boosters,” the flurry of measures would save families $300 million in total over the next five years, by exempting diapers and other baby products like bottles and car seats from the state’s 6% sales tax. Separate bills would also exempt dental hygiene products, medical devices like thermometers and pulsometers, and diabetic care equipment.
“Parents shouldn’t have to decide between buying diapers, or new toothbrushes for the family,” said House Speaker Adrienne Jones in a press conference last week, announcing the new legislation. “People shouldn’t have to worry [about] if they can afford next month’s diabetes test strips.”
Jones, a Democrat from Baltimore, said that despite federally funded financial assistance programs offered during the pandemic, many families in Maryland are still struggling to afford basic items; according to Jones, 90% of the state’s low-income families are using their monthly federal child tax credit payment to purchase basic household items.
“As the price of basic goods continues to rise, it’s getting harder and harder for working families’ budgets to keep up with rising costs,” Jones said. “It’s clear that any extra cash we can put back in the pockets of struggling Marylanders makes a difference.
Del. Eric G. Luedtke, a Democrat representing Montgomery County, introduced a companion bill to the sales tax breaks, one that would make finding a job easier for Maryland residents who frequently face unemployment. House Bill 2 would create a state match for the federal Work Opportunity Tax Credit — a benefit offered to employers who hire individuals with significant barriers to employment, like formerly incarcerated residents or those convicted of a felony, veterans, and SNAP and TANF recipients. According to a financial analysis of the bill, the credit would cost the state $73 million in fiscal year 2023, but Luedtke said the credit “pay for itself” by bolstering the state’s workforce.
“This program can change lives while paying for itself,” Luedtke said during the press conference.
The Democrats’ tax plan comes after Republican Gov. Larry Hogan introduced his own package of proposed tax cuts in January, largely focused on tax relief for retired and working class residents, and offering incentives to manufacturers. Luedtke said last week that lawmakers are continuing to work with the governor, but support for the package of tax cuts is likely in the Democratically controlled House and Senate. The deadline for the General Assembly to pass a budget fiscal year 2023 is March 30.
Colleen Grablick