Maryland Continues to Lag In Economic Competitiveness
Maryland continues to lag in key indicators of economic competitiveness.
According to the 2014 edition of the American Legislative Exchange’s Rich States Poor States, Maryland ranks 31st in the nation for economic performance and 34th for economic outlook, and jumped up one spot from 35th to 34th for Economic Outlook. Economists Art Laffer, Stephen Moore, and Jonathan Williams compiled the report’s data.
Maryland’s Economic Performance was determined by three performance variables: state gross domestic product (18th), absolute domestic migration, (42nd) and non-farm payroll employment (22nd).
Maryland’s low ranking for absolute domestic migration is due to the 123,674 residents, who left the state between 2003-2012. The migration peaked in the year 2007 and saw a decline until 2010 and 2011, when the trend reversed. However, the out-migration from Maryland began to increase.
Laffer, Moore and Williams used 15 metrics to determine the Economic Outlook ranking, which includes, among others: Top Personal Income Tax Rate, Top Marginal Corporate Income Tax Rate, Minimum Wage, Estate Tax.
The report was compiled before the General Assembly approved a phased increase in the minimum wage and a phased recoupling the estate tax to the federal rates.
Comparing the nine states with the highest and lowest marginal personal income tax rates, the report found that states with lower personal income tax rates had higher rates of gross state product, population growth, tax receipt growth, and job growth.
Maryland joined Ohio, Maine, Vermont, New Jersey, California, Oregon, Hawaii, and New York as the nine states with the highest marginal personal income tax rates.