Maryland’s new 3 percent tech tax covers a wide range of data processing, cloud storage, software and technology services. The Maryland Chamber estimates that the tax will impact roughly 15,000 employers that provide 99,000 jobs. But the tax runs counter to Governor Moore’s priorities to make Maryland more business friendly and, specifically, to grow the cybersecurity industry here, which has been fostered by presence of the U.S. Cyber Command at Fort Meade since 2009.
Maryland’s outmigration problem:
From 2013-2022, Maryland lost $20 billion in adjusted gross income from 135,000 taxpayers who moved to other states. Where did these folks move? The top destination was Florida, followed by North Carolina, Texas, South Carolina and Delaware. What do these states have in common? Relatively lower taxes and better business climates as rated by the Tax Foundation.
