Bill Would Give a Tax Cut to Small Businesses, Self-Employed


FREDERICK, Md. - Those who are self employed or own a small business in Maryland could get a tax break if a local senator's bill passes in the State House.

Jennifer Dougherty owns Magoos restaurant in Frederick, and she knows all about what it takes to make a small business successful.

"I've owned a small business in Frederick since 1987," Dougherty said.

Senator David Brinkley of Frederick County is sponsoring a bill in hopes of giving a tax break to people like Dougherty.

"The proposal is the eliminate the income tax on any income of $25,000 or less at least on the state level. I know it's not a lot, but to some people, it might make a world of difference," Brinkley (R) said.

The bill wouldn't affect small business owners and the self-employed on the federal level, but it would give them some relief in their state, county, and local taxes.

"Exempting the first $25,000 of income would be a big benefit to small companies like me," Dougherty said. "Chances are somebody like me is going to plow that money right back into the local economy either by hiring more people or buying new products or if things are good, you expand your business."

Saving money to stay afloat is something business owners in downtown Frederick say is important for them to stay in business. Brinkley says they'd save about $3,000 a year if the Maryland General Assembly passes his bill.

"The mission here is to encourage the mom-and-pop businesses in Western Maryland, the Eastern Shore, and throughout the state and by that effect give them some tax relief," Brinkley said.

Dougherty says she hopes the bill passes to help the small businesses in Western Maryland.

"Having the opportunity to take that $25,000 and take the benefit of that tax break, that would make a big difference on main street," Dougherty said.

Delegate Kelly Schulz (R) of Frederick County will sponsor the bill in the Maryland House of Delegates when session begins next month.

Don't Miss

Latest News

Video Center