Maryland retains dismal business tax climate ranking
By Mark Newgent | WatchdogWire.com
Maryland remains one of the worst states in the nation for business tax climate.
The Tax Foundation’s 2015 Business Tax Climate report shows Maryland stayed at the No. 40 spot for a third consecutive year. Maryland ranked 42nd in the nation in 2012.
A recent Gallup poll found that nearly half of all Marylanders said they would leave the state if they could, many citing high taxes a significant reason.
The Tax Foundation ranks states in five areas, corporate tax, individual income tax, property tax, sales tax, and unemployment insurance tax.
Maryland ranks 45th on the individual income tax, and is one of several states where the individual income tax caused “an unnecessary drag on economic activity.” Last year, the Tax Foundation noted that Maryland small businesses face the seventh highest marginal tax rates in the nation. Many Maryland small businesses are pass through entities because their profits are taxed on the owner’s individual income tax rate.