Hogan's 'Tax' on State Workers

Abstract

Although Gov. Larry Hogan campaigned on no new taxes and, in fact, wants to roll back some of the taxes he thinks were unfairly instituted, his budget proposal actually levies a specific (and punitive) tax, through a contorted fiscal slight of hand, on state employees. The way this is accomplished is by his decision to recast the cost of living adjustment state employees just received this fiscal year into a "bonus."