Maryland, Using New Jersey as a Model

By April 14, 2008Taxation

The Wall Street Journal observes that Maryland’s just concluded legislative session undid the hated computer services tax, but instead of cutting government spending to compensate for the lost revenue, decided to disadvantage another group of small business owners, the purported “millionares,” with an income tax surcharge on top of increases in top tax rates approved last year. From “New Jersey on the Chesapeake“:

As state Senate Minority Whip Allan Kittleman pointed out, many of Maryland’s so-called millionaires are actually small businesses that pay taxes through their proprietor’s personal tax returns. With the state’s economy struggling, wise money would avoid cudgeling a sector that has grown to more than 440,000 small businesses statewide. They now have another incentive to move to Delaware.

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