Freedom in the 50 States 2017-2018: Maryland Overall Freedom

The overall freedom ranking is a combination of personal and economic freedoms.

Maryland is one of the least free states in the country, and it has had this status since the beginning of our time series in 2000. It performs especially poorly on regulatory policy and has also slipped considerably on fiscal policy since 2000. It does enjoy locational rents from its proximity to Washington, D.C. One bright spot for the state is that its personal freedom rank has gradually increased over time from its cellar-dwelling score in 2000.

Maryland’s overall tax burden is below average, contributing to the state’s fiscal policy slide. Local taxes are much higher than average at 4.7 percent of adjusted personal income, while state taxes are a bit above at 5.9 percent. This would make for a favorable degree of fiscal decentralization if state taxes weren’t also high. However, Marylanders do not have much choice in local government, with only one competing jurisdiction per 200 square miles. It is less indebted than other states and also features lower government employment at 11.1 percent of private employment.

Maryland is the second worst state on the most important component of regulatory policy, land-use freedom. Zoning restrictions are extensive, eminent domain abuse is mostly unchecked, and there is some local rent control. Its renewable portfolio standard has become consistently worse. At least it doesn’t mandate free speech on private property. The state enacted a new minimum wage in 2013 and the figure has risen each year since then (it is $10.10 per hour as of the summer of 2018). Maryland has no right-to-work law. Occupational freedom is extremely low. By one measure (index of statutory mentions of regulatory keywords), Maryland has one of the highest figures for licensed occupations in the country and is one of the most cronyist states. However, nurse practitioners were freed for independent practice in 2015. Cable and telecommunications have not been deregulated. It has a hospital certificate-of-need law but no such law for movers. Maryland has both general and gasoline-focused laws against sales below cost. Its tort system is only about average.

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