Washington Times Cites State Business Tax Climate Index

"O'Malley, McDonnell's business duel moves offshore"

By David Hill

The spirited competition between Maryland Gov. Martin O'Malley and Virginia Gov. Bob McDonnell to bring jobs and businesses to their respective states has moved offshore.

...

Studies consistently rank Virginia as the more attractive place to do business and some have taken Maryland to task for its myriad regulations, higher-than-average income- and corporate-tax rates and the heavy influence carried by labor unions.

CNBC and Pollina Corporate Real Estate this year ranked Virginia as the most business-friendly state in the country, while Maryland ranked 29th and 36th in the respective studies.

"There's a pretty big difference there," said Mark Robyn, an economist for the District-based Tax Foundation, which in 2010 ranked Virginia's business climate 12th nationally and Maryland's 44th. "Virginia is generally a lower-tax state and by our measure they have a tax system that is structured better than Maryland's."

Despite the Bechtel loss, Maryland has long had success attracting life-science and biotech companies.

The state's life-sciences industry employs more than 71,000 people and each year drives $17.6 billion in direct and indirect economic activity, while generating about $500 million in income- and sales-tax revenue, according to the state.

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