March 12, 2015

Maryland Center on Economic Policy: Corporate Tax Cut Would Harm Maryland’s Economic Growth

ITEP Work in Action

“Reducing the corporate income tax in Maryland would also worsen he situation under which a small share of the state’s households have seen big gains in income over recent years while most other people have seen their pay stagnate and many are struggling to get by. According to analysis by the Institute for Taxation and Economic Policy (ITEP), if the corporate income tax were reduced one percentage point on the state level, the wealthiest Maryland residents–those making more than $500,000 a year–would get 45 percent of the benefit. Only 9 percent of the total share would go to the half of Marylanders who make less than $70,000 a year. Low-income Maryland residents (those earning less than $23,000 a year) would see just 1 percent. Given that the benefits would go mainly to the well-off, and the costs would be borne by moderate- and low-income residents, HB 590 would amplify the disparity between Maryland’s most and least fortunate.”

Read the full report here.