Don't Let Massive Small Business Tax Sneak by You

As you may have seen on Facebook or X, I recently spoke about a sneaky move by House Democrats to impose a massive tax increase on small businesses, by introducing a bill after we are already two-thirds of the way into session. Today the bill passed the rules committee and has already been scheduled for a hearing in the Ways and Means Committee next week, on Wednesday. I do not think many businesses and constituents are aware of this bill.

If you missed the video I posted, you can watch it here:

After months of promoting a "growth budget," Governor Moore now has the chance to show real leadership by standing against this harmful legislation. How would imposing a billion dollars in taxes on small businesses help drive economic growth? It wouldn’t.

HB1554 adds new tax burdens at a time when many businesses are already struggling with skyrocketing energy costs, and it is shortsighted and counterproductive. At best businesses will pass this fee onto consumers and worse it will force businesses to downsize, leave Maryland, or shut their doors entirely.

The reality is clear: Maryland is grappling with a $3 billion deficit while neighboring states thrive with surpluses, thanks to business-friendly policies and prudent fiscal management. Our state stands at a pivotal moment. If the Governor and the majority party are genuinely committed to resolving this crisis, they must prioritize solutions that support and empower job creators.

Small businesses are the backbone of Maryland’s economy, providing jobs, services, and opportunities for many communities.

If you share my concerns about HB1554, there are two very important steps to take immediately.

First, I urge you to make your voice heard. Our friends in the Maryland Freedom Caucus have set up a page to send a letter of opposition to key committee members. Please get involved.

https://ujoin.co/campaigns/3539/actions/public?action_id=4998

Second, if you own a small business, I would encourage you to testify in opposition to this bill at the hearing on Wednesday. The deadline to sign up to testify and or to submit written testimony is MONDAY, MARCH 10.

To do this, visit the Maryland General Assembly website and create a MYMGA account by clicking MYMGA at the top right corner.

This video will walk you through the process of creating the MYMGA account: https://mgaleg.maryland.gov/Video/Tutorials/MyMGANewAccount.mp4

This video is a tutorial on how to sign up for the bill you want to testify on: https://mgaleg.maryland.gov/Video/Tutorials/WitnessSignUp.mp4

Registration is open from 8 AM to 6 PM on Monday, March 10th for HB1554. If you choose to testify virtually, a confirmation and meeting link will be sent to the email associated with your MYMGA account.


Big Win

A big win today! As highlighted in recent media coverage, the Democrat-controlled Maryland General Assembly has been making headlines with its controversial legislation. Last Friday, they passed a bill HB380 we referred to as "Condoms for Kids," allowing contraceptives to be sold in vending machines placed in nursery schools, preschools, elementary schools, and high schools.

Videos featuring the powerful floor speeches of MD Freedom Caucus members Delegates Fisher, Szeliga, and Airkan went viral on social media, amassing millions of views. Over the past week, MDFC members have been relentlessly holding Annapolis Democrats accountable on the issue, conducting numerous media interviews and driving thousands of emails to Senate Committee members.

Thanks to the public outcry for common sense, the Maryland Senate JPR Committee decisively voted down the bill unanimously this morning. Without holding a hearing or even adding it to their voting agenda, the committee killed it.

Watch the video here: https://www.facebook.com/share/v/1FhTGhPyWL/

This is a major victory and I want to thank the public for getting involved and helping the Maryland Freedom Caucus kill this bill

Maryland Freedom Caucus Press Release


What else is happening

Last Monday, Governor Wes Moore hosted a prime-time town hall on Fox 45 in Baltimore, addressing key issues such as the budget, taxes, electric bills, and immigration, among other topics. It was a great opportunity for me and fellow Maryland Freedom Caucus members—Delegates Szeliga, Fisher, and Nawrocki—to provide a thoughtful response and share our immediate reactions to the Governor’s remarks. We appreciate Fox 45 for giving us the platform to engage in this important conversation.

If you would like to view some of our responses: On budget: https://www.facebook.com/share/p/1B5kDMTr7b/

On Energy: https://www.facebook.com/share/p/15xqhkhzuc/

On illegal Immigration: https://www.facebook.com/share/p/1H4JjHnxzx/

On other legislation

In case you haven't heard, the craziness of the Democrat-controlled Maryland General Assembly is on full display. Democrats passed HB161, a bill that would remove parents' right to opt their children out of gender identity and sexual orientation curriculum and teach it to kindergartens.You can watch the video here:https://www.facebook.com/share/v/169B38EJmy/

Last Friday, a bill was passed, "Condoms for Kiddies," permitting the sale of contraceptives in vending machines located in nursery schools, preschools, elementary schools, and high schools. This is crazy, and the video of Delegate Fisher, Szeliga, and Airkan's floor speeches has gone viral. We need your help killing both of these bills.

The Maryland Freedom Caucus has initiated action by drafting a powerful letter, but now we need your support! Add your signature and let the Senate committees know these proposals have gone too far. This isn’t just a petition—every signature sends a direct email to key Democrat-led Senate committees. It’s time for the silent majority to make their voices heard.

https://ujoin.co/campaigns/3539/actions/public?action_id=4894


Outrageous Bills Passed

I want to share a post I made last week on social media.

The Comptroller released an analysis from the Bureau of Revenue Estimates (BRE) detailing the income tax changes proposed in Governor Moore’s 2026 budget plan. https://marylandtaxes.gov/reports/static-files/BRE-BRFA-Proposal-Analysis.pdf

It is important to understand that this is only about income taxes. The governor's budget proposal has 18 different taxes and fee increases. The Governor is promoting his plan as a tax cut, but an analysis by the Comptroller tells a different story. Let’s break it down using the chart on page 10 of the report.

First, the blue section shows that middle-class earners between $75,000 and $200,000 will face an additional $106 million in taxes. How can the Governor call this a middle-class tax cut when it imposes such a significant increase on the very group it claims to benefit?

Second, while the plan provides $304 million in tax cuts, these cuts are almost entirely funded ($293m) by those earning less than $200,000 annually.

While the Governor states that only 18% of taxpayers will face a tax increase, it’s crucial to highlight that 71% of those affected earn less than $200,000 annually.

I understand some politically motivated groups dislike it when I simplify complex topics for better readability. However, I firmly believe that sharing clear, accessible information is the most effective way to shape public opinion. The data, after all, speaks for itself and deserves to be shared openly. It is evident from the Comptroller's chart that if you are a family that itemizes their deductions, you might be paying a lot more regardless of your income level.


Things are happening

The legislative session has been intense, but I wanted to take a moment to share an update on what has been an incredibly busy week.

On Tuesday, I had two bill hearings. I introduced and presented HB695 Repair the Transportation Trust Fund Act, which is a priority bill for the MD Freedom Caucus. This is a bill that I have introduced in the past, which does three things:

  1. It separates the gas tax from the consumer price index (CPI) so that it does not automatically increase yearly.
  2. Over the next five years, it will return Farebox recovery to its historic ratio of 35% of its operating costs. Why is this important? By MTA’s most recent report, in fiscal 2023, farebox recovery rates for MTA bus, light rail, heavy rail (subway), and commuter rail operating costs were 7.7%, 4.4%, 6.1%, and 4.9%, respectively. This means that drivers subsidize metro users at over 95% through the gas tax and vehicle registration fees, and the net result is that the Transportation Trust Fund is being raided to pay for mass transit.
  3. Prohibits any mandate requiring the installation of mileage tracking devices in private vehicles, effectively blocking the implementation of per-mile taxation schemes.

I also presented HB730 Election Law - Online Platforms and Qualifying Paid Digital Communications - Alterations

This bill is an adjustment to the law passed in 2018, which intended to strengthen transparency surrounding political campaign ads. The 2018 law led Google to ban political ads entirely, citing the technical difficulties of complying with its requirements. While major advertisers successfully challenged the law in court and are now exempt from its provisions, local government candidates and those running smaller campaigns remain unable to advertise. This leaves them at a significant disadvantage.

This bill aims to create a level playing field, protect the First Amendment rights of all candidates, and uphold the transparency envisioned in the 2018 law. It's important so note that the platforms have addressed the issue of transparency. For example, you can see political ads running nationwide and the committee paying for them on Google.

Both of these bills were heard in the House Ways and Means Committee and are now waiting to be voted on in that committee.

On Wednesday, I, along with the members of the MD Freedom Caucus, sent a letter to the new Energy Secretary, Chris Wright, asking for federal intervention on behalf of Maryland citizens and ratepayers to help resolve the energy crises in Maryland.

On Thursday, the Maryland Freedom Caucus was joined by Congressman Andy Harris at a press conference, where we unveiled our plan to reduce your energy bills immediately. Our proposal includes repealing the EmPower fee, reversing the impractical and expensive green energy mandates, and ensuring coal plants remain operational.

The Freedom Caucus bills are:

HB1451 Climate Solutions Affordability Act of 2025 (amended)

HB1258 Consumer Goods - Restrictions Based on Energy Source - Prohibition (Energy Equality Act of 2025)

Click read more....

Read more

Electric Bill drop

Green energy policies and initiatives are raising your rates. The state does not produce enough electricity from "clean" sources to power every home, so we import it from out-of-state, which is costly. The Democrats declared war on fossil fuels, and the result is the cost of replacing them falls on YOU, the consumer.

The Maryland Freedom Caucus submitted legislation today that will reduce your energy bills by this summer. Our bills will:

✅ Gut the Climate Solutions Now Act, Maryland’s version of the Green New Deal, which is driving up costs while providing no immediate energy relief.

✅ End the EMPOWER program, which forces a costly surcharge onto every Marylander’s electric bill without powering a single lightbulb in your home.

✅ Ban the government from outlawing your gas stove or lawn tool or vehicle. Green energy mandates are pricing Marylanders out of their home state and making it unaffordable to stay here.

With these bills, we can provide immediate relief to Marylanders across the state suffering from the high cost of living and energy affordability.


Repairing Maryland's Broken Transportation Trust Fund

Repairing the Transportation Trust Fund  

Maryland's Transportation Trust Fund (TTF) has reached a breaking point, and motorists are being abused. The burden of maintaining and growing the state's transportation infrastructure—roads, bridges, and mass transit alike—has fallen disproportionately on the shoulders of motorists. Meanwhile, mass transit riders continue to pay a fraction of the cost to operate a system they rely on, leaving the state's fiscal foundation crumbling under the weight of an imbalanced approach. My bill HB695"Repairing the Transportation Trust Fund" bill, is necessary to bring about fairness and a functioning highway system.

At one time, the Maryland General Assembly sought to maintain some equity in transportation funding through a 30% farebox recovery mandate. This policy meant mass transit riders covered nearly one-third of the system's operating costs. This historical and very reasonable ratio ensured those using the service contributed meaningful amounts of money towards its upkeep. However, as transit operating expenses rose, the Maryland Transit Administration (MTA) repeatedly failed to meet the target. By 2017, the farebox recovery mandate was repealed altogether.  

The results have been disastrous. Today, transit riders cover just 8% of operational costs. Maryland motorists and taxpayers must fill the gap, subsidizing 92% of mass transit operational costs. Through escalating gas taxes and, last year, the legislature increased vehicle registration fees by 60%, and drivers pay far more into the system than they get out.

Maryland's historical approach to transportation funding isn't working for anyone. Drivers are increasingly frustrated by continuously growing gas taxes—indexed to inflation since 2013—which feel like an endless penalty for simply hitting the road. Residents are voicing frustration over taxes, and local road projects are being canceled. One notable example is the complete defunding of the Route 5/Great Mills Road project.

Transit riders are also frustrated by the heavy reliance on subsidies, which puts the system constantly at risk of budget shortfalls and further stifles improvements or expansions.  

Maryland's TTF, which should be the lifeblood of all forms of transportation in the state, is being drained by inefficiencies and inequities. Transit ridership remains well below pre-pandemic levels, and the MTA's farebox recovery lags far behind other states with comparable systems. While similar transit systems in different parts of the country achieve cost-recovery ratios of 25% or more, Maryland averages a dismal 7-8%.  

If this trend continues, Marylanders from all walks of life will face the consequences. Transit systems will remain chronically underfunded, cutting corners on safety and reliability. This issue impacts everyone, regardless of whether they commute by car, bus, or train.  

HB695 proposes a realistic and measured solution to this funding crisis. By gradually reinstating farebox recovery requirements—starting at 15% in FY2026 and reaching 30% by FY2029—the bill ensures that transit riders contribute a fairer share of the costs associated with operating the system. It doesn't place an undue burden on transit users, as even the 30% target leaves the majority of costs subsidized by the state. What HB695 does accomplish is simple justice, leveling the playing field for motorists who have shouldered the financial responsibility for far too long.  

The bill also stops the relentless indexing of Maryland's gas taxes to the Consumer Price Index, which a decade ago was marketed as a permanent fix for the TTF but has disproportionately impacted drivers and served as a hidden tax hike year after year.

Last year's Gonzales poll clearly shows that Marylanders are united on this issue. A commanding 64% of residents want priorities shifted toward maintaining and repairing roads and bridges. These core infrastructure elements connect communities, enable commerce, and improve quality of life. While transit funding is still essential, it cannot come at the expense of the broader transportation network upon which all Marylanders depend.  

Finally, as Maryland looks for ways to climb out of a three billion dollar structural deficit, it is certain that some in Annapolis will consider implementing a mileage-based tax. HB695 aims to prohibit any mandate requiring the installation of mileage-tracking devices in private vehicles.

HB695 isn't just fiscal reform; it's a moral recalibration. Requiring all users—whether they drive or ride transit—to pay their fair share is common sense. The cost of maintaining Maryland's infrastructure must be shared equitably across the entire system so it can serve everyone effectively.  

If we want safe, dependable infrastructure for future generations, we must take steps now to ensure fairness.  

Citizens, you have a role to play. Call or email representatives and share your concerns about the current system's inequities and inefficiencies. Maryland can no longer afford to continue to kill local highway and bridge projects by kicking the can down a pothole-ridden road.  It's time to repair the Transportation Trust Fund—and in doing so, repair Maryland's transportation future.


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