On Taxes, Whither Maryland? Or is it Wither?

By August 10, 2007Taxation

Not a lot of detail in the reports this morning about Maryland’s Gov. O’Malley’s budget plans. Just enough to snort at. From the AP:

ANNAPOLIS — Gov. Martin O”Malley”s administration gave an update yesterday on plans to address the state’s $1.5 billion deficit, saying reforms will include closing corporate tax loopholes and demanding that the wealthy “pay their fair share.”

The governor, in a statement released yesterday, voiced plans to “reform our tax system in a way that makes it more modern, more inclusive and more fair.” Mr. O”Malley also said the tax system needs to be made “more fair for the working families of our state who have been taking it on the chin for the last few years.”

“This will mean closing loopholes for big giant corporations and — yes — demanding that the wealthiest among us pay a fair share,” Mr. O’Malley said in the statement, which was taped last week before he went on vacation.

Oh, yeah. Taking it on the chin…from whom? State tax collectors?

In July, Forbes Magazine ranked the states according to their business climates. (Here’s the chart.) Maryland did remarkably well, 12th overall, but when it came to business costs, it ranked 41st. The category includes cost of labor, energy and taxes.

In that category, Maryland’s going the wrong, wrong way.

P.S. “Mr. O’Malley and legislative leaders also have been considering raising the state’s sales tax from 5 percent to 6 percent, raising the state’s gasoline tax and legalizing slot machine gambling.”

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