Budget battle: Montgomery County weighs competing tax hike plans

MONTGOMERY COUNTY, Md. (7News) — Montgomery County leaders are facing growing pressure after residents overwhelmingly voiced opposition to proposed tax increases during a public hearing this week, setting up a debate over how to fund next year’s budget.

At Tuesday’s hearing, every resident who testified spoke against raising taxes, citing ongoing financial strain from inflation, housing costs, and utilities. The feedback comes as officials consider two competing budget proposals with sharply different approaches to revenue. The County Executive’s plan would raise property taxes by roughly 6% and include a slight increase to the income tax rate from 3.2% to 3.3%.

The proposal is part of an $8 billion budget aimed at fully funding public schools and maintaining county services.

A separate proposal from County Council President Natali Fani-Gonzalez would eliminate the property tax increase and instead implement a tiered income tax system. Under that plan, about 96% of households would see a tax reduction, while higher-income earners making more than $300,000 annually would pay more…

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