Three Key Maryland Democrats Open to Cut Corporate Tax Rate

Later in a legislative panel with Del. Sheila Hixson and Sens. Edward Kasemeyer and Rob Garagiola, the three lawmakers agreed that lowering the corporate tax would be in the best interest of the state.

 Hixson, a Montgomery County Democrat and chair of the House Ways and Means Committee, said that a decrease has not been considered in any of the House’s tax plans.

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 “I would be happy to work with Ed to see if we can get together with the House and Senate and certainly go forward with hearings and getting what kind of fiscal impact it has,” Hixson said. “Sometimes in the state legislature we get accused of not being business friendly, but there is a sense that we want everybody working together in this point in time to help you.”

 Kasemeyer, a Howard County Democrat and chair of the Senate Budget and Taxation Committee, proposed cutting one quarter of one percent per year until “the impact wouldn’t be so significant every year.”

 “I think it would be for the better of Maryland if we could reduce it,” Kasemeyer said. “From a perception basis, the 8.25% rate makes us look out of line. We get around $750 million from the corporate income tax.”

 Although Garagiola, Senate majority leader, said that Maryland does rely too heavily on federal jobs, the state has taken action to diversify its economy in recent years.
 

“There are a number of things that we put in place, the research and development tax credit, to try to foster and grow other industries,” he said. “Biotech, high tech, even greentech. It’s one of the fastest growing sectors in our state. There were a lot of jobs created in that sector even during the recession.”

 “We got to react to what they do at the federal level,” Garagiola added.