Posted on 01/22/25
| News Source: FOX45
As some Maryland residents face the prospect of increased taxes, a study by the Tax Foundation found Maryland is already one of the least competitive tax states in the nation.
The study ranked Maryland 46th in tax competitiveness, with only Connecticut, California, New Jersey, and New York ranking lower. Wyoming was identified as the most competitive tax state.
Governor Wes Moore acknowledged the issue, stating, "You cannot look at our tax system and say that it works as it should."
The state currently imposes numerous taxes, including income, property, sales, business, gas, cigarette, alcohol, vaping, cannabis, and sports gaming taxes. Maryland is also the only state with a digital advertising tax and both an estate tax and inheritance tax.
Critics argue that the state's tax policies are driving residents away. "The state is becoming less and less competitive when it comes to taxes, and that means people are going to leave," said David Williams, President of the Taxpayers Protection Alliance.
Governor Moore has proposed additional taxes, including a 75-cent delivery tax on packages and an income tax hike on the wealthiest 18 percent of Marylanders. "The people taking on the lion's share of the increase are people who make more than $750,000," Moore said.
Researchers warn that high-tax states like Maryland are losing population as taxpayers relocate to states with lower taxes. "The state needs to understand the fiscal implications of tax increases. People will leave, they've already left. And once people start leaving, it puts the state in a very dangerous fiscal position," Williams said.