FACT CHECK: Maryland’s Job Climate

Claim: Maryland better off than other states

Fact: Maryland’s Business Climate Lags Behind Neighboring States

The Maryland Chamber Commerce recently reinforced how uncompetitive Maryland is with the neighboring states of Virginia, North Carolina, and Pennsylvania.  The study, done by Ernst and Young, measured corporate taxes in three important Maryland industries: financial services, bio-tech research and manufacturing, and professional services. Maryland ranks dead last in tax rates for each industry except one.

The Chamber study concluded:

·        Maryland has the highest tax rates for both financial services and professional services,

·        Business taxes in Maryland are higher for both the professional and financial services industries

·        Maryland has the highest state and local taxes paid by middle-class families,

·        Maryland is ranked worst in combined individual income tax rates,

·        Maryland has the highest electricity cost for both commercial and industrial users.

·        The study shows Maryland is competitive in biotechnology, thanks in part to Bob Ehrlich authoring an enacting the biotech tax credit in his first term.

BACKGROUND: According to a recent study of business confidence done by the Jacob Francis Institute, Maryland’s business confidence has declined 58% over the last four years.  A study done by the Tax Foundation concluded Maryland has dropped 21 spots in the Business climate index over the last four years to 45th worst in the nation.