County Executive Steve Schuh, Councilman Derek Fink Work Toward $19 Million Tax Cut Agreement
Proposed agreement would reduce structural deficit to lowest level since 2008.
Annapolis, MD (June 8, 2015) – Working towards a consensus to bring real, responsible tax relief to our citizens, County Executive Steve Schuh today announced a $19 million income tax reduction compromise proposal supported by County Councilmen Derek Fink, Michael Peroutka, and John Grasso.
“During my campaign, I promised real tax relief to our citizens, and that plan was endorsed by 61 percent of voters,” said Schuh. “This agreement would realize our goal of saving working families hundreds of dollars over the next several years. It demonstrates our commitment to changing the fiscal direction of this county to make it easier to live, work, and start a business here.”
“This agreement is an example of how government should work,” said Councilman Derek Fink. “We need to come together with a strong consensus that brings much needed tax relief to our citizens.”
The proposal, initiated by Councilman Derek Fink with the support of Councilmen Peroutka and Grasso, will reduce the county’s income tax rate from 2.56% to 2.45%. It will save the average Anne Arundel County family approximately $80 a year.
“The people of my district elected me to reduce their taxes,” said Councilman Michael Peroutka. “This agreement will put more of the people’s money in their pockets.”
“Working people are sick and tired of the government taking a bigger and bigger bite out of their paychecks,” said Councilman John Grasso. “This agreement will make certain the people of my district will see real relief.”
The agreement reduces the structural deficit to the lowest level since 2008. Shifting from a proposed property tax cut to income tax cut reduces the projected structural deficit this year from $15.7 million to $6.2 million, which is a 10 percent reduction from the Council-approved FY2015 budget’s structural deficit.
“I believe the structural deficit will be closed by end of this budget year, as it has been in the recent past years,” said Schuh.
“I look forward to working with Chairman Jerry Walker and the Council to support this proposal and deliver the real, responsible tax relief their constituents demand.”
The County Council will finalize the budget on June 12th.