ROCKVILLE, MD (September 25, 2014) – The Maryland Public Policy Institute issued the following statement today in response to reports that Maryland state government overestimated tax revenues by $450 million due to a slowing economy and overspending by government.  

“The cracks in Maryland’s economic foundation are growing,” said Christopher B. Summers, president of the Institute.  “The cause is clear: state government has been spending more than it can afford and taxing more than it should.  The purchasing power of Maryland families has eroded and small businesses have stopped hiring.  The solution is equally clear: state government must dial back spending and taxes to let families save or spend as they fit and to give small businesses greater confidence that Maryland is the right place to hire new workers.  We urge lawmakers to end their pursuit of an ever-growing government and to craft sensible tax reforms that put the economic needs of families and small businesses first.”  

On Wednesday, Maryland’s Board of Revenue Estimates wrote down projected state revenues by $450 million for Fiscal Years 2015 and 2016.  The write-downs are largely due to declining individual income tax collections.  The news follows reports in June that Maryland’s economy grew by 0.0 percent.  In addition, Maryland’s unemployment rate has leapt from 5.5 percent in April to 6.4 percent in August.

Earlier this month, The Baltimore Business Journal published a proposal by the Maryland Public Policy Institute to bolster economic growth through tax reform.  The proposal can be found at this link. 

About the Maryland Public Policy Institute: Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. The Institute’s mission is to formulate and promote public policies at all levels of government based on principles of free enterprise, limited government, and civil society.