ITEP Testimony on Governor’s Plan: Expanding the Sales Tax

My testimony today focuses on the sales tax legislation included in the Tax Reform Act of 2007. In particular, my testimony will discuss the impact of the bill’s expansion of the sales tax base to include more services. The proposed changes are an important first step toward a more sustainable Maryland tax system. But, because these changes increase the importance of Maryland’s most regressive major revenue source, expanding the sales tax base will make it even more important to provide some form of lowincome tax offset to mitigate the impact on Maryland’s poorest families.

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