In the Baltimore Sun, Anirban Basu and Zack Fritz of the Sage Policy Group offer their view that Maryland’s state government fiscal woes arise from an imbalanced tax policy. From the commentary piece:
Maryland’s recent fiscal disappointments are largely due to the fact that businesses and people are mobile. If raising tax rates produced no countervailing impacts, tax revenues would rise in predictable fashion. But the fact is that in a world in which businesses are striving to maximize profits and where households are trying to hold on to earnings, raising taxes and fees generates economic responses —responses that have translated into massive fiscal disappointment.