On July 6, 2025, Maryland Governor announced a series of new tax reforms aimed at increasing state revenue and supporting key programs and services. The reforms come as the state government faces financial challenges due to the ongoing pandemic and economic downturn.One of the key reforms introduced is a new tax on high-income earners in the state. Under the new legislation, individuals earning over $500,000 a year will see their income tax rate increase by 3%. This tax hike is expected to generate an additional $200 million in revenue annually, which will be used to fund important programs such as education, healthcare, and infrastructure.In addition to the tax increase on high-income earners, the state is also implementing a new tax on digital services. This tax will apply to services such as streaming platforms, ride-sharing apps, and online marketplaces. The new tax is expected to generate an estimated $50 million in revenue per year.Furthermore, the state government is introducing a tax credit for small businesses in an effort to stimulate economic growth and job creation. Small businesses with fewer than 50 employees will be eligible for a tax credit of up to $5,000 for hiring new employees or expanding their operations.Governor also announced plans to streamline the tax collection process and crack down on tax evasion and fraud. The state will be investing in new technology and resources to improve tax compliance and enforcement, ensuring that all residents and businesses pay their fair share.Overall, the new tax reforms are expected to generate approximately $300 million in additional revenue for the state and provide much-needed support for essential services and programs. The government hopes that these changes will help Maryland recover from the financial challenges brought on by the pandemic and continue to thrive in the years to come.