This afternoon, Governor Moore and General Assembly leaders announced a 3% tech tax on small businesses. This policy would be disastrous for Maryland’s economy, businesses and jobs, undermining our future as a tech hub and leader.
This is Not Simply a “Tech Tax” — It Affects Every Maryland Business and Resident
The effects of this proposed tax extend far beyond harming one of Maryland’s fastest growing sectors. In today’s interconnected economy, tech services are a fundamental component for businesses across all sectors.
- Small businesses crushed: Every local shop that uses software, websites, IT support, or cloud services will face higher costs
- Jobs at risk: Employers facing sudden tax increases may freeze hiring or cut positions to manage new expenses
- Defense sector threatened: Critical defense contractors will struggle with increased costs, jeopardizing their competitiveness for federal contracts
- Main Street suffering: Family-owned businesses with thin margins will be hit hardest as essential tech services become more expensive
- Competitive disadvantage: While Virginia and other neighboring states attract businesses with incentives, Maryland risks pushing companies across its borders
These higher costs won’t stay with businesses — they’ll be passed down to consumers. In a world where technology touches everything, from your work and child’s education to your healthcare, this tax could make essential digital services unaffordable for many Maryland families, widening the digital divide.
