How states run business off

DC Examiner:

Maryland used to be in the middle of the pack of states with business-friendly environments. No more. The Tax Foundation now ranks Maryland as the sixth worst state in the nation in which to do business. Only Rhode Island, Ohio, California, New York, and New Jersey are more hostile to job- and revenue-producing enterprises. Maryland’s “remarkable drop” - from 24th in 2008 to 45th place this year – is attributed to last year’s passage of the largest tax hike in state history, coupled with other major tax policy changes that also put the Free State dead last in the personal income tax category.

Christopher Summers, president of the Maryland Public Policy Institute, summed up the real problem facing formerly free-spending states now suddenly face-to-face with billion-dollar deficits: “The debate has always been revenue, revenue, revenue – not spending priorities,” he told The Examiner. “We continue to promise more than we bring in. It’s a dereliction of fiduciary responsibility. Meanwhile, families and businesses are struggling to swim and the state throws them a cinder block.”

American companies already pay some of the highest federal corporate taxes in the industrialized world. When states like Maryland and California pile on even more taxes on top of that, business owners start looking at other states that are competing for their presence....

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Texas has become the state in which to headquarter a business because it has one of the lowest tax rates not only for the companies but also their employees. The latter is just as important because it means it is easier to attract workers at a fair wage. While places like California and Maryland are running off business Texas is gaining. It is a good example of how liberalism is a failure.

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