We've moved! Come join us at Watchdog Arena, where you'll continue to find the same quality articles that expose waste, fraud and abuse as well as examine policy issues at all levels of government.

Please visit our new home and follow us on social media: Facebook & Twitter

Get Involved!

Sign up as a Citizen Journalist and get involved in Information Activism.

Sign Up for Watchdog Updates!

Maryland Retains Dismal Business Climate Ranking

October 9, 2013

Maryland retained its dismal 41st ranking on the Tax Foundation’s State Business Tax Climate Index.

The Tax Foundation writes that it’s rankings “enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare.”

While Maryland ranks 8th in sales tax and 15th in corporate tax , the state ranks near the bottom (46th) for individual income tax (46th), 40th for unemployment insurance tax, and 41st for property tax.

Screen Shot 2013-10-09 at 2.02.54 PM

The poor individual income tax ranking stands out as a sore thumb for Maryland’s business climate because as the Tax Foundation has shown the state’s high individual income tax has a disproportionate effect on small businesses.  According to their research as many of Maryland’s small firms are pass through entities where the owners pay the individual income tax rates, and face the 7th highest marginal tax rates in the nation.

Maryland has lost 6,500 small businesses since 2007 according to research from the grassroots citizens group Change Maryland.

Maryland ranks second in the nation, according to the foundation, for income tax revenue as a percentage of state and local tax revenue.

Wyoming took the top spot in the index, while New York came in last.

Mark Newgent

Mark Newgent is a contributing editor to Red Maryland, the premiere blog of conservative politics in the Free State, voted one of the best state political blogs by the Washington Post two years in a row. His writing has appeared in the Baltimore Sun, Washington Examiner, National Review Online, and more. Twitter: @MarkNewgent

More Posts - Website - Twitter - Facebook - Google Plus

Categories: Business Climate, Economy, Must Read, Policy, Taxes
Tags: , ,


  1. Maryland Retains Dismal Business Tax Climate Ranking
  2. Maryland’s labor force participation rate on the decline
  3. The O’Malley Administration’s History of Shakedown Tactics
  4. Your Dollar Doesn’t Go Far in Maryland
  5. Uber Gets A Taste of Maryland’s Business Climate


comments powered by Disqus