Capital Gains Tax and the Common Good: A Balanced Path Forward for Maryland

As Maryland debates how to structure a fair capital gains tax, here is the official statement by L.T. Pret.

L.T. Pret on CAPITAL GAINS Tax

I get why people are upset—saying capital gains aren’t money you worked to earn can come off as dismissive to those who’ve taken real financial risks, built businesses, or invested wisely. That kind of success does involve effort and sacrifice, and it deserves recognition. At the same time, I think Delegate Feldmark’s broader point was that capital gains often benefit from a system we all pay into—stable markets, legal protections, public infrastructure. So while the gains are yours, they’re also made possible in part by a shared foundation.

Many conservatives see statements like this as undermining individual responsibility and achievement. To them, it sounds like the government wants a bigger cut of personal success, regardless of the risk taken or value created. That concern is valid—people want to know their hard work and smart decisions won’t be penalized. A balanced approach should value both personal enterprise and the common good. We need policy that reflects both truths.

What would a balanced policy look like in Maryland?

To reflect both individual enterprise and our shared economic foundation, Maryland could consider a tiered approach to capital gains taxation—one that encourages investment while recognizing that public systems contribute to private success.

1. Graduated Capital Gains Tax Brackets We could adopt brackets where long-term capital gains from lower- and middle-income investors are taxed at lower rates, while high-value gains (especially from passive or inherited wealth) are taxed slightly higher. This rewards everyday investors while asking more from those who’ve significantly benefited from public infrastructure.

   
   

2. Small Business Investment Incentives Marylanders who reinvest their capital gains into local small businesses, green tech, affordable housing, or community revitalization could receive expanded tax breaks. This would directly channel private success into the public good and promote local economic growth.

   
   

3. Holding Period Rewards By decreasing tax rates the longer an asset is held, we can encourage long-term investment over short-term speculation. This creates market stability and rewards investors who build sustained value.

   
   

4. Revenue Reinvestment in Infrastructure and Workforce Development Any increase in capital gains revenue should be transparently reinvested into public goods that enable future success—like transportation, broadband access, public education, and job training programs. This ensures that the next generation of investors and entrepreneurs inherit a strong foundation.

This kind of policy doesn’t punish success—it encourages responsible, community-minded investing. It tells Marylanders: we value your hard work, and we also value the systems that make that work possible.

That’s the kind of thoughtful, forward-looking policy balance I will always advocate for—because Maryland deserves leadership that sees the full picture.

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Media Contact:

Larry Pretlow II

L.T. Pret Communications

wire@larrypretlow.com