Paul's View

Time for taxpayers to get angry

Comments (3)
  1. Tom Hood says:

    Paul,

    Actually, there is a small inaccuracy in this article. The Maryland Association of CPAs testified before the Ways and Means Committee that a separate itemized deduction approach for Maryland taxpayers would be the best way to approach this issue from the TCJA. We also advised the legislature against the ‘charitable contribution approach taken by a few other states would be rejected by the Treasury, which it ultimately was.

    We also did acknowledge that there would be extra costs associated with the Comptroller having to audit Maryland itemized deductions in a ‘decoupling situation’. However, we did not have the information about those extra costs that were outlined in the fiscal note in the legislation and did not comment or offer an opinion on those costs. As we understand it, the costs in the fiscal note may have been a major factor in the Committee’s decision. We also agree that the change in itemized deductions at the federal level will create a significant and unexpected tax increase on many of Maryland’s taxpayers. I hope this helps to clarify our involvement in this issue. We stand ready to help the legislature and Comptroller address this issue as needed.

    Tom Hood, CPA,CITP, CGMA

    1. Paul Schwartz says:

      Tom, Thank you for your clarification. I believe we are on the same page on this. The reference to the Association of CPA’s was included in a direct quote from Delegate Valentino-Smith. Regardless, I am hopeful that we might see some redress this year even if a year late. Paul Schwartz

  2. Tom, I appreciate the clarification. I actually quoted the response we received from Delegate Valentino-Smith. Regardless, I think we are on the same page on this issue and I look forward to testifying along side you when the issue comes before Ways & Means and Budget & Taxation. Doing nothing amounts to a tax hike and we are not going to let this go. Paul

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