A Maryland state government budget that creates a new tax and raises others is closer to reality, following approval in the House of Delegates on Wednesday.

Delegates spent three intense hours debating the measures, with Democrats insisting that they made difficult but responsible choices and Republicans saying that the state is spending beyond its means and driving businesses out of Maryland.

“We have two choices before us,” said Del. Ben Barnes, the Democratic chair of the Appropriations Committee. “We have hard choices and intolerable choices. It is hard. Even taxing millionaires? Not easy.”

But that tax increase and others, Barnes argued, is better than the “intolerable” option of cutting education or health care or road safety projects.

The budget that Barnes and Democratic leaders put forward closes a gap between spending and revenues with a combination of cuts and tax increases. It represents an agreement that top Democratic lawmakers reached with Gov. Wes Moore last week.

Republicans railed that the measures within the budget bills represent one of the largest tax increases ever in the state.

“We continue to grow government. We continue to spend more,” said Republican Del. Jesse Pippy of Frederick County. “And the only way that this budget works is by raising taxes $1.6 billion. Disappointing.”

The state was already facing a $3 billion gap between revenues and spending when the budget process began in January. That gap widened as the state began to see the effects of President Donald Trump’s firing of federal workers and slashing of spending.

Key elements of the budget include:

• Increasing income tax rates on individual earnings above $500,000 to 6.25% (up from 5.75%) and above $1 million to 6.5% (up from 5.75%). Moore said the increase for affected Marylanders would average $1,800.
• Establishing a 3% tax on information technology and data services, generating nearly $500 million.
• Increasing taxes on cannabis sales, to 12% from 9%.
• Increasing the tax on sports betting, to 20% from 15%.
• Increasing the standard deduction that individuals can claim on their taxes by 20%, to $3,350 for individual taxpayers and $6,700 for those filing jointly.
• Continuing to allow taxpayers to itemize deductions on their taxes, but limiting how much can be deducted for those earning more than $200,000.
• Adding a 2% surcharge on capital gains for filers with more than $350,000 of income, with a portion of the money funding transportation.
• Applying the 6% sales tax to vending machine sales.
• Increase the excise tax on vehicles to 6.8%, from 6%.
• Setting a maximum local income tax rate of 3.3% to be charged by counties and Baltimore City, up from the current limit of 3.2%.
• Enacting a corporate tax reform called combined reporting.

During a three-hour debate Wednesday, Democrats got up one after another and talked about how difficult the choices were.

Del. Malcolm Ruff, a Baltimore Democrat, said the Republican perspective of cutting spending more deeply represents a flawed view of government — which is supposed to help people.

“We are here as a body to dispense justice and fairness to all Marylanders across the state, and I’m disappointed the minority party wants our people, our citizens to go it alone, based on their proposals on the budget,” Ruff said. “They want every man to fight for themselves and that’s just not how this works.”

Ruff invoked retired Sen. Shirley Nathan-Pulliam, a revered figure among Baltimore-area Democrats who attended a recent community meeting via video from a hospital to urge Ruff and lawmakers not to cut Medicaid. “Do not disappoint the good senator, and do not disappoint the constituents that need you most right now,” Ruff said to applause.

Del. Gabriel Acevero, a Montgomery County Democrat, also addressed Republicans.

“It’s easy to criticize,” he said. “It’s harder to govern.”

Acevero, one of the most liberal lawmakers, said the budget represents a balance between “efficiency cuts” and raising taxes. And he said that if he had his way, he would go further on taxes, mentioning a tax break that private country clubs get that he’s been trying to eliminate — but he backs the budget that was negotiated.

“My constituents didn’t send me here to warm a seat,” he said. “We’re here to make tough decisions, and this budget reflects that.”

Republicans who had fought unsuccessfully one day earlier to eliminate tax increases and further slash spending warned that the budget will harm taxpayers and drive businesses out of the state.

Del. Mark Fisher, a Calvert Republican, went even further, announcing that businesses should go ahead and leave.

“Don’t move into Maryland, and if you have a small business or a medium-sized business, get out of Maryland now,” he said. “The Democrat Party sees you as an ATM machine, and they will never stop until such time as they have the perfect socialist government that will then collapse upon itself, because there is no revenue left.”

The vote on the main budget bill fell largely along party lines, but Del. Sheree Sample-Hughes defected from the Democratic Party position and voted no.

Sample-Hughes, the only Democrat elected from the Eastern Shore, attempted to explain her vote by saying that the budget didn’t match the values and needs of her constituents. But she ran over her two-minute limit to explain her vote, and House Speaker Adrienne A. Jones had to bang her gavel. Del. Stephanie Smith, the parliamentarian, declared that Sample-Hughes’ time was up, but the delegate kept trying to talk.

“I can talk louder than you, do you want me to do that?” Smith asked. “Sit down.”

Sample-Hughes responded: “The two minutes are up, but the passion for the people continues.”

Democrats were less united on a second budget bill where most of the tax increases reside, known as the Budget Reconciliation and Financing Act. Eight Democrats defected and voted no, including some who represent politically “purple” districts where they face tougher reelection chances next year.

The budget bills now move to the state Senate, which is planning several changes to the bills, including differences in some of the spending cuts, not including combined reporting for businesses and adding in contingency plans for if Congress cuts federal aid that the state receives.

The Senate is expected to debate its version of the budget later this week, and the House and Senate will likely iron out their differences in the final days before lawmakers adjourn their session at midnight on April 7.