Well-known Moody’s Economist Mark Zandi joined the Senate Budget & Taxation Committee Thursday for a sprawling discussion on the Maryland and national economies. He discussed a wide range of topics, including tax rates, housing markets, infrastructure, education, and economic development. One topic he raised (in response to committee questions) was different incentive approaches to economic promotion, where he offered, “I would focus in infrastructure… rather than the tax code.”
Committee Chair Kasemeyer raised questions with income taxes, pointing directly to the county income tax rates as a component of the overall tax impression. One line of conversation was to shift the income tax structure and “place that burden someplace else.”
He also discussed preferred tax treatment of retirement income as an incentive, saying “the results don’t quite stand up… I would not go down that path.” He responded similarly to other narrow tax incentives.
Moody’s Analytics was also hired to prepare an analysis of Maryland’s tax structure this fall – for more coverage of that report (referenced in this week’s briefing), see previous Conduit Street coverage: Moody’s Analytics: Maryland’s Business Taxes “Stack Up Well” Compared to Peers