Letter to the Editor: Cut taxes and services will go

This letter appeared in the Nov. 6, 2015, edition of the Baltimore Business Journal

Dear Editor:

The Maryland Chamber of Commerce needs to look beyond tax breaks if it truly wants to help businesses without cutting state funding needed for transportation, education, police, firefighters and other services that residents and businesses rely on every day.

In an Oct. 15 article in the Baltimore Business Journal, Maryland Chamber CEO Brian Poffenberger suggested that it’s possible to both cut taxes for businesses and protect investments in critical services, but the types of policies the chamber is lobbying for in Annapolis will do the opposite and ultimately would prevent the state from investing in the things that truly drive economic growth.

For example, the chamber is asking for new income tax breaks for business owners who choose to file their business taxes via their individual income tax return (known as “pass-through entities”). This approach has been disastrous in states like Ohio, where such an approach is taking $350 million a year away from state services, with virtually no benefit to the economy.

The vast majority of business owners benefiting from Ohio’s tax break saw their tax bills go down by $60 or less. At the same time, Ohio is now having to consider cutting funding from child protective services, senior centers, libraries and public health departments, among other basic necessities.

Maryland businesses receive a great return for their tax dollars — in the form of a highly educated workforce, strong transportation connections to the U.S. and global economy, world-class health care and public safety. But that could change if the state no longer has the resources it needs to continue investing in the things that make Maryland a great place to live, work and do business.

Benjamin Orr is executive director of Maryland Center on Economic Policy.