The House Ways & Means Committee heard two bills yesterday that would decrease Maryland’s corporate income tax. HB 170 would decrease the rate from 8.25 percent to 6 percent. HB 199 phase the rate down from 8.25 percent to 6 percent over five years, 0.45 percent per year.
The Maryland Chamber supports a reduction in the State’s corporate income tax. Maryland Chamber Senior Vice President of Government Affairs Mathew Palmer outlined the Chamber position during the hearing.
“We have been consistent in our position on the corporate income tax of reducing it from the 8.25 percent where it sits right now to 7 percent, where it was before it was increased in 2007,” Palmer said. “The Maryland Chamber believes that phasing this reduction in over a five year period is a fiscally prudent way to decrease the corporate income tax in order to help our state become more competitive.”
Maryland’s corporate income tax rate was increased during the 2007 special session as part of a revenue package designed to address a $2 billion structural deficit. Today, Maryland’s budget is in a better place, and rolling back the corporate tax rate could help make Maryland more competitive with surrounding states, especially West Virginia (7.5 percent), North Carolina (6.9 percent), and Virginia (6 percent).
Maryland is a great place to live, work and do business. The Maryland Chamber will continue to focus on areas that can help boost the State’s competitiveness and improve economic growth and private sector job creation. A phased in reduction of Maryland’s corporate income tax would be a positive step. For more information, contact Mathew Palmer at email@example.com.