Del. Ready Pushes for Corporate Tax Reduction Bill

Del. Justin Ready (R-Carroll) has presented HB 234, legislation to reduce the Maryland corporate tax rate from 8.25 percent to the 2007 level of 7 percent before the House Ways and Means Committee.   

“The corporate tax does not make up a large portion of state revenues, but it is really hurting our ability to retain and attract business," Ready said in a news release. "The time to take action is now."

Ready said that not only will lowering the corporate tax rate relieve some of the burden on businesses currently operating in the state, but it will also make Maryland a more attractive place for companies to locate their businesses.

“Just as we proudly claim a number one ranking in education and high rankings for quality of life, we should be striving to be the number one destination for private sector business," Ready said. "With Virginia at 6 percent corporate tax rate and Pennsylvania likely taking action to lower their rate from 9.9 percent to 6.9 percent, we will be facing even greater competition in the coming years."

Carroll County Chamber of Commerce President Mike McMullin said that small businesses are vital to the economy and any financial relief would be welcomed.

"Small businesses are the backbone of our economy and struggle daily to make payroll and move their products or services," McMullin said. "An action to reduce the corporate tax rate by the state will be perceived as a positive move toward creating a positive business climate in Maryland."

In a letter of support for this bill, the Carroll County Chamber of Commerce wrote: "Maryland is currently ranked 42^nd overall for business friendliness in the 2011 State Business Tax Climate Index, and we believe HB234 is a step in the right direction towards fostering a more attractive climate for business in our state. Our current tax rate is too high and puts Maryland at a competitive disadvantage."

“This legislation would go a long way towards making Maryland’s whole tax environment more competitive nationally and regionally. Economic growth is the key to fixing our budget deficit,” Ready said.