Maryland Chamber Senior Vice President of Government Affairs Mathew Palmer urged members of the House Ways & Means Committee to support legislation to reduce the individual income tax rate on all filers by 10 percent over a three-year period. Palmer stressed the positive impact the reduction would have on small businesses.
“Working through the Maryland Competitiveness Coalition, we are looking for ways to attract, create and grow businesses and jobs in the State. A change like this would help small and medium sized business that are pass through entities to reinvest and push job growth in the State,” Palmer said.
Maryland is a small business state, and thousands of those businesses are organized as pass through entities, such as S-Corporations and LLCs. The business income for these entities is taxed on the individual income tax return of the business owner. Reducing the tax rate by 10 percent would have a positive impact on these businesses. Maryland’s top effective tax rate is higher than competitor states. A 10 percent reduction would send a positive message, as Maryland works to attract and retain high paying jobs.