New Study Analyzes Business Tax Competitiveness
The Maryland Chamber of Commerce, along with a number of partner business organizations, released an Analysis of Maryland's Business Tax Competitiveness. The study evaluates how Maryland's tax system compares with Virginia, Pennsylvania and North Carolina from the perspective of a company considering a new location or expansion.
"As candidates for state office debate strategies for addressing Maryland's budget deficit, growing the economy and creating jobs, the Maryland Chamber urges them to keep Maryland's competitiveness in mind," Maryland Chamber President & CEO Kathy Snyder, CCE said.
The study was prepared by Ernst & Young LLP. Three types of companies were considered in the analysis: a financial services corporation, a biotech manufacturing corporation and a professional services pass-through entity. All types of business taxes resulting from the proposed business expansion were considered, including corporate income taxes, franchise taxes, individual income taxes for a pass-through entity, sales taxes on business inputs and property taxes.
The study’s findings demonstrate that Maryland has work to do in order to be more competitive with nearby states on business taxes:
- In two of the three industries evaluated, Maryland’s business taxes were the highest among the four states considered.
- Business taxes are 55% higher in Maryland for financial services companies than in Pennsylvania, the lowest cost state.
- Business taxes on biotech manufacturing companies are 19% higher in Maryland than in Virginia, the lowest cost state.
- Business taxes are 68% higher in Maryland for professional services pass-through companies than in Pennsylvania, the lowest cost state.
In order for Maryland to retain and attract investment and jobs, we must have a competitive tax system. The Maryland Chamber will continue to encourage lawmakers to avoid actions that would make Maryland less competitive.
View the complete study here (pdf). If you have any questions about the study, contact Ron Wineholt at firstname.lastname@example.org.