Maryland's Business Tax Climate Makes Biggest One-Year Decline; TF in Annapolis This Wednesday

October 13, 2008
By 

This Wednesday, Maryland Governor Martin O'Malley will go back to Annapolis to present a final list of proposed budget cuts to the State Board of Public Works. In the midst of an economy in decline that has led to these revenue shortfalls, the Tax Foundation and the Maryland Public Policy Institute will be holding a press conference in Annapolis announcing that Maryland has made the largest decline in our State Business Tax Climate Index, sliding from 24th in 2008 to 45th in 2009 in our annual ranking of the "business-friendliness" of each states' tax systems. Here are the details:

  • What: Press Conference - Re: Maryland's Tax Climate - 2009 State Business Tax Climate Index
  • Who: Tax Foundation and Maryland Public Policy Institute
  • Where: Lawyer's Mall - Maryland State House - Annapolis, MD
  • When: 9:00 AM - Wednesday, October 15, 2008
  • Interview Availability: Immediately Following the Press Conference
  • Tax Foundation Contact: Matt Moon, Manager of Media Relations, W: (202) 464-5102, moon@taxfoundation.org
  • Maryland Public Policy Institute Contact: Christopher Summers, President, W: (240) 686-3510, csummers@mdpolicy.org

Tax Foundation Staff Economist Josh Barro is the author of the study, which ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax. States achieve high scores by having low rates, broad tax bases and simple rules.

Maryland's drop from 24th to 45th out of 50 states on the Index is attributable to an increase in most of the state's major taxes for FY 2009. They raised the corporate income tax rate to 8.25% from 7%, the sales tax rate to 6% from 5%, and the cigarette excise tax to $2.00 from $1.00 per pack. Maryland also created four new income tax brackets, raising taxes on filers earning more than $150,000 per year. The state's top personal income tax rate is now 6.25% (up from 4.75%); that's on top of a weighted average local option rate of 2.98%. Maryland now has by far the worst personal income tax in the country, with a significantly lower score than second-place California.

Ed C of the Howard County Maryland Blog also noticed that Maryland was "sinking like a rock," and Richard Falknor of the Blue Ridge Forum Blog bemoans that Maryland might be "creating opportunities for Delaware, Virginia and Pennsylvania."

Find the 2009 State Business Tax Climate Index here.

Tax Foundation coverage of Maryland's tax changes:

Subscribe to the Tax Foundation Newsletter

Follow Us

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

Monthly Archive