Maryland Gov. Wes Moore said Wednesday in his third State of the State address that the “easy decisions are done” in confronting the state’s budget woes and “confusion and chaos” of the Trump administration.
Considered a rising star in the Democratic Party, Mr. Moore’s hopes of continuing his assent now hinge on digging the state out of its worst budget mess in decades and doing so while President Trump upends the status quo next door in Washington.
“Our entire state is being tested right now,” Mr. Moore said in the speech. “We are being tested by historic fiscal challenge, the likes that we have not seen since the Great Recession. And if that wasn’t enough, we are now being tested by a new administration in Washington that sows uncertainty and confusion and chaos.”
Mr. Moore said Mr. Trump’s push to freeze federal grants, start a trade war and gut federal agencies threaten to roil Maryland, where many residents and businesses work for or with the federal government.
“These trials that we now face, both those inherited and those that are newly realized, mean that the easy decisions are done,” he said. “They’re off the table. We only have difficult decisions ahead.”
Mr. Moore said the state’s $2.7 trillion structural budget deficit will require spending cuts and tax increases on the state’s wealthiest residents.
Describing the state’s tax code as “unfair,” Mr. Moore advocated for his plan to create new high-income tax brackets at 6.25% for people earning over $500,000 and 6.5% for those earning $1 million or more.
“Yes, we will be asking people who have done exceptionally well to pay a little bit more so we can invest in our economy,” Mr. Moore said, noting he would pay more under his plan. “I’m OK with paying a little bit more if it means we do not have to lay off firefighters and police officers. I am OK with it if it means we have the best public schools in America. I’m OK with it if we can have the resources to grow our economy.”
His twist on taxes will certainly be an issue when he seeks reelection next year with an eye on a 2028 run for the White House.
Mr. Moore said his tax plan would give two-thirds of Marylanders a tax cut. It also would eliminate itemized income tax deductions and double the standard deduction on state income tax returns. Mr. Moore’s proposed budget also includes a higher tax on sports gambling and cannabis. He has called for cutting the corporate tax rate to 7.99% from 8.25% by 2028.
He wants to scrap the inheritance tax and offset the funding loss by lowering the estate tax threshold to $2 million from $5 million.
Mr. Moore said his plan will help build on the success of creating jobs and expanding access to internet broadband and child care services. He also boasted that preliminary data shows homicides and nonfatal shootings at the lowest levels in a decade.
“The journey forward starts by modernizing government,” he said. “It starts by reining in spending and being more responsible with how we invest taxpayer dollars.”
• Seth McLaughlin can be reached at smclaughlin@washingtontimes.com.