- The Washington Times - Wednesday, February 29, 2012

ANNAPOLIS — Gov. Martin O’Malley’s proposal to cap itemized tax deductions for Maryland’s highest earners is now off the table, a leading state lawmaker said Wednesday.

Senate President Thomas V. Mike Miller Jr., Prince George’s Democrat, said the General Assembly will almost definitely eliminate a proposal from the governor’s proposed budget that would reduce possible deductions for residents who make $100,000 or more a year.

“I think it’s going to fall by the wayside,” Mr. Miller said. “Both the House and Senate leadership have expressed displeasure with that proposal to the governor and we’re looking for alternatives.”

Mr. O’Malley, a Democrat, had proposed a 90-percent cap on deductions by residents making $100,000 or more and an 80-percent cap on those making more than $200,000. The change would have affected the top 20 percent of earners in the state.

The proposal received heavy resistance from homeowners and the real-estate industry, who worried it would reduce the value of mortgage interest deductions, which make up about half of itemized deductions claimed in the state.

Legislators also complained that it reached too far into the state’s middle class.


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