The Maryland Public Policy Institute believes comprehensive tax reform can be the greatest catalyst for economic expansion in Maryland. The state’s ranking as the 42nd most competitive tax climate out of 50 states by the nonpartisan Tax Foundation makes clear Maryland must improve. The Institute’s key recommendations for pension reform are:
- Replace industry-specific tax credits with lower income tax rates for all businesses.
- Lower Baltimore City’s property tax to spur growth and investment in Maryland’s largest city.
- Expand the Earned Income Tax Credit to reward work and benefit more low-income households.