More on Pending Maryland Legislation

More on Pending Maryland Legislation

A bill without organized opposition may have reached its year.  The Civil Rights Tax Fairness Act, HB 1169/S 639, seeks to equalize the taxation of employment damage awards with those of personal injury claimants for purposes of Maryland taxes.  A person who gets money because of a personal injury does not pay taxes on the award:  the exchange of money for an injury or ongoing pain is not the same as earning money.  A person who exchanges money for the pain of having been racially harassed, however, does pay taxes on those damages.  In both cases, the money is not earned income, it is the only, way to compensate someone for an illegal action leading to pain.  Employers do not object to this law.  It has a tax consequence to the State of Maryland, but it is minuscule.

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