May 2, 2023
As we continue our series of spotlights on where Maryland ranks compared to other states regarding key economic indicators, today we’re focusing in on where Maryland ranks for taxation on individuals, businesses and property.
What the data shows: The data shows that in issues ranging from individual income tax burden to overall business tax climate, Maryland consistently ranked as one of the least economically competitive states both nationally and regionally.
Here’s a closer look at what the data reveals and why it matters to Maryland:
When you combine this with the data regarding Maryland’s low rankings for business climate and competitiveness and around the state’s population loss and moderate employment growth trends, there is cause for concern for Maryland’s economy moving forward.
Why it matters: High tax burdens can discourage businesses and individuals from locating in a state, which can hinder economic growth and job creation. While taxes are necessary to fund public services, we need to consider reducing tax burdens to prevent a decline in the state’s population, workforce, and business community. When businesses leave, they take jobs, economic investments, community support, and tax revenue with them. States across the country have realized, after hard lessons learned, that raising taxes and implementing onerous regulations on businesses is not the way to grow thriving communities.
EXPLORE THE 2023 COMPETITIVENESS REDBOOK for MARYLAND