Skip to content

Maryland Democratic Legislators Open to Reducing Corporate Tax Rate

1 min readBy: Joseph Bishop-Henchman

At a Maryland Chamber of Commerce panel last week, legislators in Maryland's Democratic majority expressed openness to reducing the state's 8.25 percent corporate taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rate. From the Maryland Reporter:

“I would be happy to work with Ed to see if we can get together with the House and Senate and certainly go forward with hearings and getting what kind of fiscal impact it has,” [Montgomery County Delegate Sheila] Hixson said. “Sometimes in the state legislature we get accused of not being business friendly, but there is a sense that we want everybody working together in this point in time to help you.”

[Sen. Edward] Kasemeyer, a Howard County Democrat and chair of the Senate Budget and Taxation Committee, proposed cutting one quarter of one percent per year until “the impact wouldn’t be so significant every year.”

“I think it would be for the better of Maryland if we could reduce it,” Kasemeyer said. “From a perception basis, the 8.25% rate makes us look out of line. We get around $750 million from the corporate income taxA corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. .”

Maryland ranked 41st out of 50 states in our most recent State Business Tax Climate Index. While the corporate tax rate is high, Marylanders also pay high income and property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. es.