Annapolis - Underscoring the steady erosion of the state's manufacturing sector, Change Maryland Chairman Larry Hogan called on the Governor and General Assembly leaders to enact corporate income tax reform. There is no indication that such reform will be among the Governor's legislative priorities, and the General Assembly's presiding officers and key committee chairs have also been silent in the lead up to this year's session.
"It is not just red states moving to cut taxes," said Hogan. "Governor Andrew Cuomo has aggressively moved to improve New York's business climate and cut the corporate income tax on manufacturers to stem job losses in that sector, and it's working."
Change Maryland, citing Bureau of Labor Statistics figures, issued a report showing the state has the second-worst decline year-over-year in manufacturing of any state. Maryland's loss of 4500 manufacturing jobs, a 4% loss, is eclipsed only by West Virginia which saw a 5.4% decline in the same period. The long-term decline in this sector transcends governors' administrations. Since 2002, Maryland has lost 33% of its manufacturing jobs, the sixth-worst decline in the nation.
The dismal trend has only worsened since O'Malley became governor. Since 2007, Maryland lost 20% of its manufacturing employment base, the 10th worst decline in the country. Over 26,000 manufacturing jobs vanished during that time.
"It is unacceptable that the state's most powerful elected officials do nothing with numbers as clear and convincing as these," said Hogan. "These are the results when economic development is nothing more than cherry-picked pie charts and bar graphs in the Governor's power point demonstrations."
Just over a year ago, Governor Cuomo forged an agreement with the senate majority leader and assembly speaker on executive proposals to cut taxes and create jobs in advance of the 2012 legislative session. The corporate income tax rate for New York manufacturers was cut to 6.25%. Maryland's rate is 8.25%
New York's decline of year-over-year manufacturing jobs is 1.4%, less than half of Maryland's decline during the same period.
About the plan to cut the corporate income tax, New York's Democratic house speaker said the state "wins when manufacturers thrive, so by decreasing their tax burden, manufacturing companies will be more likely to hire and spur the economy."
"As he has done on other high-profile issues, O'Malley should follow Cuomo's lead and build support for manufacturing jobs with the General Assembly," said Hogan. "I also applaud the minority party for pushing to lower corporate income taxes and recognizing that over-reliance on government employment and dismissing the private sector spell economic trouble for Maryland."
Change Maryland reported on O'Malley's tax-raising legacy which includes 24 tax and fee hikes since 2007, including raising the corporate income tax from 7% to 8.25%.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
3 comments:
They should do away with corporate tax. Corporations aren't really paying it anyway. It gets passed on with higher prices for their goods and services, which makes the "Made in China" goods less expensive and more attractive. All corporate taxes do is take money out of the consumers pockets further adding to the decline of the economy.
why would a company base itself in a state that continues to raise corporate taxes whe surrounding states are eliminating corporate taxes???
Eliminate the corporate tax for sure. It will never happen as long as people continue to elect peons like omalley and obama who both have their heads stuck so far up the corporations butts their noses are brown. It makes them feel good to hang with the CEO Big Dogs and the CEO's are loving the favoritism shown (as obama with GE and the film industry)because it helps to eliminate the less prosperous competition in a way that doesn't violate anti trust laws. omalley and obama are both nothing more than slaves to big business and they have all their foolish slobbering followers believing it's the republicans who are in cahoots with the corporations. Couldn't be further from the truth. The republicans are smarter and know if this tax were eliminated (which corps are not really paying but the consumer (YOU) are) there would be more disposable income for people thus helping to boost spending and the economy.
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