The lights had barely gone out on the Annapolis special session,
called to increase income taxes, when the Department of Labor jobs
numbers came out for April. It reported that Maryland led the nation in
job losses, dropping by 6,000. Is there a connection to government
policy? You bet.
As taxes are raised in Maryland, businesses and
private-sector jobs are collateral damage. About 81,000 Maryland
businesses are organized as Subchapter S corporations and are taxed at
personal income-tax rates. Faced with an unanticipated personal
income-tax increase, many of these businesses will be unable to hire or
may even have to reduce their current workforce. This is insanity in a
state that needs to create nearly 150,000 additional jobs just to return
to pre-recessionary levels.
The personal income tax is a major
factor for business retention and relocation decisions. CEOs understand
that locating in Maryland will subject their own personal salary to one
of the highest tax burdens in the country. After comparing the 9 percent
top personal income-tax rate in Maryland with 5.75 percent in Virginia,
major business leaders have chosen Virginia.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
2 comments:
Maryland unemployment will continue to rise under O'Dumbass's leadership
Well no wonder 11:29. No one in their right mind is ever going to expand a business nor open a new one in Maryland. They are too afraid he's going to come up with some fee or other tax to hit them with. Who in the world ever thought we'd see the day where we are taxed to use the crapper????
Business people see this and wonder what in the world this lunatic governor will come up with next that hurts them.
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