BALTIMORE — President Donald Trump’s proposed “Big Beautiful Bill” is poised to make Maryland families the nation’s fourth largest beneficiaries if it passes through Congress.
On Wednesday, the White House released a state-by-state analysis revealing how American citizens would benefit from the proposed tax plan.
According to the Council of Economic Advisers, a typical Maryland family with two children could see an increase in annual take-home pay ranging from $8,900 to $15,500 after taxes.
When it comes to long-term wage increases, projections suggest Maryland families may experience gains between $7,200 and $13,800, adjusted for inflation.
Should these estimates hold true, Maryland would rank fifth in the nation for wage increases as a result of the plan.
The Council of Economic Advisers attributed these projections to the impact of tax cuts on wages and investments, which could lead to a higher GDP through reduced statutory rates and increased business deductions.
The White House pointed to the success of Trump’s 2017 Tax Cuts, which are set to expire later this year, as a foundation for their optimistic forecasts.
The administration emphasized that President Trump’s “One Big Beautiful Bill” aims to provide an economic boost for working and middle-class Americans by delivering the largest tax cut in history, enhancing take-home pay and wages, along with significant spending cuts and efforts to reduce the deficit.
Key aspects of the proposed legislation include the elimination of taxes on tips and overtime, additional tax cuts targeted at seniors, an increased child tax credit, and the establishment of savings accounts for newborns.
The proposed bill faces opposition from Democrats, who argue that it may harm middle-class families while favoring wealthy individuals.
Concerns have also been raised by both parties regarding potential adverse effects on government welfare programs, such as Medicaid and food stamps.
In response, Trump’s administration contends that the plan would actually strengthen these safety net programs, insisting that it protects Medicaid for those in need and promotes work requirements for able-bodied Americans on taxpayer-funded benefits.
In Maryland, government subsidies, including Social Security payments and veteran benefits, amount to approximately $68.5 billion annually.
The federal deficit also poses a significant obstacle to the realization of the “Big Beautiful Bill,” with the Congressional Budget Office projecting an increase in the national debt.
Shortly after the White House analysis was shared, Maryland’s Comptroller issued a report assessing the impact of Trump’s economic policies on the state’s economy.
This report zeroes in on Trump’s efforts to pare down the federal workforce, noting that Maryland is home to approximately 229,000 federal employees.
These employees constitute six percent of the state’s workforce and represent ten percent of overall wages, translating to $26.9 billion annually.
Additonally, approximately $8.8 billion is distributed to 153,000 households reliant on federal retirement income.
The impact of the proposed changes extends beyond employment and wages, affecting the flow of federal contracts and grants that Maryland receives.
Annually, federal contracts amount to about $46.2 billion, equating to ten percent of the state’s Gross Domestic Product (GDP).
Many of Trump’s policies are currently entangled in legal challenges, but their ramifications are already being felt throughout the state.
For instance, Maryland Attorney General Anthony Brown indicated that 813 federal workers sought state unemployment benefits between January 21 and March 3.
Johns Hopkins University, a prominent institution in the state, faced a substantial blow earlier this year, losing $800 million in USAID grants within January alone, prompting the institution to lay off 2,000 workers across 44 countries, including 200 employees locally.
The full report from the Comptroller’s office provides deeper insights into these implications.
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