Maryland can’t cut its way to growth

By Benjamin Orr
Executive Director, Maryland Center on Economic Policy

Giving more tax breaks to those at the top won’t create the good jobs Maryland needs. At the same time, it would undermine our future by making it harder for the state to invest in the things that do build a strong economy – like our schools, roads, emergency services, and health care.

States like Kansas and Ohio offer real-world examples of the perils of this misguided policy approach. Ohio cut its income and corporate taxes over a decade ago and still lags far beyond the national average in job growth. Maryland, by contrast, added jobs at a rate slightly above the national average during that same time period.

Since lawmakers in Kansas made drastic cuts to business and income taxes, average Kansans have seen many teachers laid off and watched money for road repairs disappear, among many other consequences of declining state revenues. At the same time, they have been paying more in sales and local property taxes. Going on five years since the tax cuts, the promised jobs and economic growth have not materialized in Kansas, either.

A strong business climate requires a well-educated workforce, modern infrastructure, and a good quality of life for employees. In order keep moving Maryland forward, we must continue to invest in these pillars of our economy.