We Told You So
Low and behold a new report issued by Moody’s tells you what you already new, as the Frederick News-Post reports:
So what exactly are the big problems that are stymieing the state’s economic growth? The “biggest red flag” when it comes to economic growth is the personal income tax. “Personal income tax, the combined state and local rates, is substantially higher than almost everywhere else,” White says, adding that “Only Washington, D.C., and Oregon are higher as a share of the local economy.”
How much higher? The national average is 2.1 cents per dollar earned; in Maryland it’s 3.5 cents! Even in its peer group, where the average is 2.5 cents, Maryland compares poorly.
Yes, Maryland taxes under the leadership of the Maryland Democratic Party are a full 67% higher than the national average.
This isn’t a surprise to Red Maryland readers, as we have long advocated here for lower personal income taxes and property tax indexing. That’s why Red Maryland has written about Maryland taxes approximately 914 times over the last eight years.
Unfortunately, we already know that Legislative Democrats will be opposed to any remedy to this situation. They will remain steadfastly opposed to any reductions in the income tax in order to fuel economic growth in our state. Instead, there will be at least one Democrat in 2016 who proposes an increase in the income tax to do what they have always done; transfer money from Maryland’s hard working taxpayers to the Democrats special interest friends.