States fiercely compete with one another: they compete for jobs, they compete for businesses, and they compete for people. There is no finish line in the inter-state economic competition. This never-ending struggle requires states to consistently maintain an advantageous economic environment vis-à-vis other states.

Many factors impact a state's competitive environment. A number of these factors-such as climate, natural resources, or in Maryland's case, proximity to Washington, D.C..-do not change. State economic policies (i.e. tax, expenditure, and regulatory policies) vary across states and across time within a state and have significant implications for a state's economic prospects. For this reason, state economic policies are crucial economic competitive metrics. And, the results of this economic competition have real implications for future state economic performance. The states that establish and maintain the most pro-growth economic environment will have flourishing economies while states with weak competitive environments will have struggling economies.

Maryland now clearly falls into the latter category. Due to the tax increases implemented in 2008, Maryland's competitiveness is falling significantly behind the country's economic leaders. The rationale for these tax increases-the impending structural deficit-will continue to erode Maryland's economic competitiveness further in the future if left unchecked.

In the near-term, the struggling Maryland economy and resulting decline in tax revenues are creating even greater pressure for more tax increases in order to maintain state spending commitments. However, if the state is finding it more difficult to afford its desired spending commitments, Maryland's citizens are finding it equally hard. While raising taxes anytime is difficult, raising taxes during difficult economic times is especially problematic. No phrase should be more important for Maryland to adhere to than primum non nocere (first, do no harm). Maryland should not balance the government's budget by unbalancing its citizens' budgets.

Maryland's should focus on creating a more competitive economic environment that encourages greater work, savings, and investment in the state and aligns the state's expenditure commitments with its ability to afford them. This paper provides a blueprint to address Maryland's declining economic competitiveness. This blueprint provides policy guidance that will help Maryland increase its economic competitiveness, raise its sustainable long-run economic growth rate, and accelerate income and jobs growth in the state.