Maryland Business Groups Urge General Assembly to Forego Tax Increases

ANNAPOLIS, MD – Governor Larry Hogan recently declared a state of emergency in reaction to the spread of the COVID-19 virus. Meanwhile, the Maryland General Assembly is currently weighing several tax increases to help pay for an overhaul of the state’s public education system. NFIB and the Maryland Chamber of Commerce —partners in protecting the business community in Maryland—warn that any drastic increase in state taxes would be ill-advised given the unknown impact the COVID-19 virus will have on Maryland’s economy.

“COVID-19 has already had a tremendous impact on our economy—an impact that stands to intensify in the coming days and weeks,” said Christine Ross, president and CEO of the Maryland Chamber of Commerce. “In the last two weeks alone, we have seen historic plunges in the stock market and an emergency rate cut by the Federal Reserve. Maryland’s own fiscal leaders have described the situation as ‘highly volatile’ and expressed their concern that we are headed for a full-blown recession.”

The legislature is nearing the end of its annual 90-day legislative session with several proposals being considered that would raise taxes on businesses by an estimated $700 million to pay, in part, for the state’s education overhaul.
“Given the unknowns of how this global pandemic will impact Maryland’s economy, we strongly feel that it would be ill-advised for the legislature to pass a $700 million tax increase on our state’s job creators,” said Mike O’Halloran, state director of NFIB in Maryland. “Such a massive tax increase will surely have a negative effect on Maryland businesses, and considering the unchartered waters we find ourselves in, the General Assembly should resist passing any tax increases on businesses.”

The NFIB Research Center released a new survey on the current impact of the coronavirus on small businesses and found that owners are concerned about future disruptions if the outbreak continues to escalate. More than 80% of respondents said they are concerned about the impact the outbreak will have on their business.

“Policymakers must remember that our small businesses, which employ a majority of Marylanders, are facing possible supply-chain disruptions, and these are expected to increase the cost of doing business,” added O’Halloran.

“We are mindful that the General Assembly is considering several business tax measures aimed at raising revenue to fund its priorities,” said Ross. “However, tax policy is complex and results in many unintended consequences. The imposition of new taxes will only worsen this crisis for Maryland businesses and the citizens they employ.”

To learn more about the Maryland Chamber of Commerce, Maryland’s only statewide business advocacy organization, please visit www.mdchamber.org.