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Committee backs narrower progressive income‑tax proposal, sends it to full Council
Summary
The Montgomery County Government Operations and Fiscal Policy Committee recommended a scaled progressive income‑tax structure (an alternative to the County Executive’s flat 3.3% proposal) and directed staff to return the proposal to full Council for consideration, while noting a multi‑year revenue gap will require offsets.
The Government Operations and Fiscal Policy Committee voted to forward an alternative progressive income‑tax structure to the full Montgomery County Council for consideration.
Council staff presented modeling showing that moving from the county’s flat 3.2% income tax to a progressive set of brackets would reduce revenue relative to holding the flat rate and would require identifying roughly $89.3 million in resources in FY27 under the committee’s narrower alternative (the packet modeled multiple bracket options and the council chair’s broader progressive proposal). Mr. Smith (S10), who led the presentation, told the committee: “What the county executive is recommending is that he wants to go to 3.3%,” and contrasted that with the council president’s bracketed approach that phases gains and losses over several years.
Why it matters: presenters said the change would lower effective tax rates for filers with modest incomes while increasing marginal rates for high‑income filers; staff cautioned the full revenue effects phase in over multiple fiscal years. Chair Stewart (S1) said the committee favored the alternative because it narrows the fiscal impact while preserving support for targeted anti‑poverty programs. The committee’s recommendation will appear on the full Council agenda for a final decision.
