Maryland Stands to Lose Under Any Fiscal Cliff Scenario

A report issued by the president’s Council of Economic Advisors found that Marylander’s would spend $3.9 billion less if the Congress does not extend tax cuts for middle-income earners.  As reported by the Baltimore Sun (limited free views available):

The decline in consumption caused by higher taxes would slow the state’s economic growth by 1.4 percentage points, according to the report.

However, Maryland is likely to be affected by any fiscal cliff scenario:

Maryland stands to be disproportionately affected no matter how the cliff talks end. No action would trigger deep, across-the-board cuts to federal agencies and contractors based in the state. But a deal to avert the cliff will also come with spending cuts. Because of its proximity to Washington, Maryland is one of the highest-ranked states for per capita federal spending.

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