A Letter to the Washington Post in Response to Governor O’Malley’s Op-ed

Here's a letter to the Washington Post:

Governor O'Malley paints a rosy picture for businesses in Maryland (Opinions, Sept. 17). He even suggests that the Tax Foundation has positive things to say about the state tax code, and then cites one isolated figure from one of our reports that looked at one class of businesses.

But virtually every other ranking we produce shows Maryland doesn't stack well against Texas. Our State Business Tax Climate Index ranks the state 39th best while Texas scores 9th best. Maryland’s overall tax burden is 12th highest, while Texas ranks 45th highest. Maryland’s corporate and individual income tax rates are among the highest in the country, and the state seems eager to pass new levies like the now-infamous “rain tax.”

The debate between tax rates and government services they render is important, but we should start that debate with facts, not obfuscation.

Scott W. Drenkard
Economist
Tax Foundation