State Tax Issues
October 5, 2007--Maryland, My Maryland
The charge: Maryland has high taxes. Well, yes and no.
While Maryland ranks toward the top in total taxes per capita (at 14), it ranks toward the bottom of the states in taxes as a percentage of income (at 40). See here.
Maryland takes in 54 cents in taxes for every $10 of gross domestic product. The national average per $10 of gross domestic product is 54 cents. See here.
Overall, Maryland's tax system is fairly regressive and, in the period 1989-2002, actually became more regressive. See here.
October 29, 2007--Update
The Tax Foundation has statistics that, once you distill them, put Maryland's tax posture in even a better light. The key phrase is "distill," since the Tax Foundation wants Maryland's tax to appear as onerous as possible.
According to the Tax Foundation, Maryland ranks 23rd among the states in the state and local tax "burden." That is, Maryland's overall "blended" state and local tax comes to 10.8%, lower than the 11% national average. This is not bad considering that per capita income in Maryland is one of the highest in the country. That's why the "total" tax burden, adding the federal income tax burden to the state and local tax burden, pushes Maryland a little bit above the national per capita average.
The Tax Foundation chart is here.
January 12, 2008--State Budget
Here's a chart of the Maryland State 2008 Fiscal Year Budget from Maryland Fiscal Year Budget Highlights:
