ANNAPOLIS, MD-Two Frederick County state lawmakers have proposed a cut in the corporate tax rate to help make it more competitive and perhaps fuel corporate relocations from its southern neighbor-Virginia.
The proposal would trim the rate on corporate income from 8.25% to 6%, which is the same corporate tax rate as Virginia's, according to the Baltimore Business Journal.
The proposal is the third attempt in recent years to reduce Maryland's corporate income tax rate after it was raised from 7% to the current 8.25% rate in 2007.
“If we lose business to Virginia, it won't be because we don't offer the same tax rate as Virginia,” says Del. Kelly Schulz, one of the sponsors of the bill. “I want to be able to take that issue off the table.”
The Maryland Chamber of Commerce supports lowering the corporate tax rate, which would help the state compete with Virginia and North Carolina. See story in the Baltimore Business Journal.
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