Friends, Last week was a blockbuster.

• ✅Successful military strikes against Iran.
• ✅The stock market hit all-time highs.
• ✅ Major victories at the Supreme Court for states' rights, immigration policies, and parental rights.

Meanwhile, Democrats nominated a Marxist for Mayor of New York.

President Ronald Reagan once said, "Our vision is clear and compelling: a vibrant America, with an economy that is always growing, a future that is always bright, painted in bold colors, not pale pastels."

The stark difference between the two parties' visions for our nation has never been more apparent.

Here in Maryland, we’ve got some challenges ahead.

As your State Representative, I’m committed to keeping you informed about changes that affect our community. Starting July 1, 2025, new taxes and fees from the recently passed Fiscal Year 2026 budget will kick in. These changes will impact all of us, especially middle-class families, and it’s my job to break them down clearly for you. Let’s also set the record straight on tax relief claims coming from Governor Moore that don’t tell the whole story.

New Taxes and Fees Effective July 1, 2025

The budget, signed into law by Governor Wes Moore, includes the largest tax increase in Maryland's history, approximately $1.6 billion in new or increased taxes and fees. Here's a breakdown of the key changes:

• Income Tax Changes:
• • New millionaires tax brackets starting at $500k: Individuals earning over $500,000 will face a 6.25% tax rate, and those earning over $1 million will be taxed at 6.5% (up from 5.75% for incomes over $250,000).
  • A 2% capital gains surtax for individuals with federal adjusted gross income (AGI) above $350,000.
  • Elimination of itemized deductions for filers earning over $200,000, with the standard deduction doubled to $5,400 for single filers and $10,900 for married couples filing jointly.
• Sales Tax on IT and Data Services: A new 3% sales tax on IT and data services (excluding mobile phone services) impacts businesses and consumers who rely on technology services. (link to story on the Baltimore Sun)
• Vending Machine Sales Tax: A 6% sales tax on snacks purchased from vending machines.
• Increased Excise Taxes:
• • Vehicle excise tax rises from 6% to 6.5%.
  • Cannabis tax increases from 9% to 15%.
  • Sports betting tax rises from 15% to 30%.
• Transportation-Related Fees:
• • A $5 fee on every new tire purchased, starting in 2026.
  • Accelerated increases in car registration fees.
• Local Income Tax Cap: The maximum local "piggyback" income tax rate for counties increases from 3.2% to 3.3%, potentially raising local taxes depending on county decisions.

In a recent appearance on The View, Governor Moore stated, "94% of Marylanders will see a tax cut or no change in their income taxes." Watch the video here: https://www.facebook.com/DelegateMattMorgan/videos/1607654233258098

This claim is intentionally deceptive when considering the broader tax and fee landscape. Here's why I disagree:

• Hidden Costs Outweigh Relief: The modest income tax cuts for some Marylanders—often less than $200 annually—are dwarfed by new taxes and fees. For instance, a middle-class family saving $53 on income taxes will likely pay far more in increased vehicle registration fees, tire fees, and taxes on vending machine purchases or IT services. These cumulative costs erode any perceived relief.  
• Impact on Small Businesses and Consumers: The 3% IT and data services tax and higher excise taxes burden small businesses, which may raise prices for middle-class consumers. This is an indirect cost that contradicts the Governor's claim of widespread tax relief.
• Elimination of Deductions: Removing itemized deductions for filers earning over $200,000 limits benefits for homeowners and charitable donors, potentially reducing community support systems that middle-class families rely on.
• Economic Risks: Raising taxes on high earners and businesses historically leads to an exodus, as the Maryland House Freedom Caucus and business leaders have warned. This will shrink the tax base, increase pressure on middle-class taxpayers, and hinder job growth, counteracting economic growth.

The squeaky wheel gets the oil.

Every day, I hear from people planning to leave Maryland. They share significant milestones—retirement, kids graduating—and then say, "That's it, we're out of here." But before you pack your bags, I urge you to stay involved. Politics follows public opinion, and the truth is, if we fix the politics, we can tackle the real problems, like crime, education, and high taxes.

Your voice matters. Share your thoughts, experiences, and concerns about the new taxes and fees, especially on social media and with friends and family. The truth is that with the right people, we can push for policies that truly support Maryland families and align with the values we all care about. Let's continue to work towards making Maryland a freer, safer, and more prosperous state.