Maryland has all the machinery for robust economic growth, but its complicated corporate tax structure and reliance on the government are holding back its progress, according to a new report outlining a five-year economic plan for the state.
"Maryland is a conundrum," according to the 42-page report compiled by the state-appointed Maryland Economic Development Commission. "On the one hand, it ranks only in the middle of leading innovation states in economic activity, but on the other, it is among the leaders in fast-growing companies."
The state ranks fourth in fast-growing firms, but ranks 27th in employment growth from young companies and 33rd in the percentage of citizens starting companies, according to the report.
The commission urges Maryland lawmakers to review the state's incorporation and licensing policies and consider employing faculty and business school students to help companies wade through strategic and operational issues.
The commission also recommends that the state invest more in immigrant entrepreneurs and "work with federal partners to ensure that [they] can become U.S. citizens."
"Federal and state regulations aimed at giving small, minority, and women-owned businesses entry into public sector contracts may be unintentionally having the effect of locking them into subcontractor status and limiting growth," the report reads.
The commission further outlines hindrances in the state's business licensing, regulatory and permitting procedures, saying the processes take too long and lack clarity.
"At its worst, perceived or real government intransigence is a competitive disadvantage to Maryland, and has been debated within the state for decades," commissioners wrote.
Despite the criticisms, Maryland's unemployment rate ranks below the national average and economists say the state has weathered the recession far better than most states.
[Because so many Marylanders work for the government. --Editor]
The federal government has helped buoy the state by generating high incomes and attracting workers with multiple college degrees, but its presence also has led to more modest commercialization and lower rates of industry-funded research and development, the report says.
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I have to pay $300 a year to register my corporation in MD. This is in addition to other business and professional licensing fees, which add up to hundreds of dollars more every year!!
ReplyDeleteDelaware isn't far behind, either: They just increased their corporation filing fees by 25%! Last year was $100, and now it's $125. They also have more business and professional licensing fees, etc.
All in all, I pay thousands (that's right - THOUSANDS) of dollars each and every year just for the privilege of doing business around here.
That's in addition to the other business and income taxes which are assessed and paid annually as well.
To add insult to injury, I just got hit with a workers comp insurance bill, which has doubled since last year! I didn't have any injuries or claims, either.
And they wonder why small businesses are not faring so well these days?