Tuesday, November 03, 2015

Are Maryland's Tax Rates and Regulations Pushing Residents Out of the State?

In 2013, Maryland had a net reduction in population, according to a Maryland Reporter article. Virginia, West Virginia, and D.C. also experienced net population losses but at smaller rates than Maryland. Delaware, on the other hand, experienced one of the largest net population gains in the United States.
There are many reasons why people move between states. Family, career, retirement, and weather are just a few examples. Tax rates and business climates, too, incentivize interstate migration. The exact cause of Maryland’s net loss in population is unknown, but it would be na├»ve to not at least speculate if high tax and unduly stringent regulatory policies are pushing people out. Maryland has recently been ranked 37th in fiscal health, 39th in small business climate, 40th in overall business tax climate, and 45th in individual income tax structure.
While high taxes and unnecessary regulations might not be the reason why Maryland experienced a net population loss, reducing tax rates and eliminating burdensome regulations could incentivize individuals and businesses to remain in the state.