Change Maryland to Martin O'Malley: Follow Andrew Cuomo
Annapolis - Underscoring the steady erosion of the state's manufacturing
sector, Change Maryland Chairman Larry Hogan called on the Governor and General
Assembly leaders to enact corporate income tax reform. There is no indication
that such reform will be among the Governor's legislative priorities, and the
General Assembly's presiding officers and key committee chairs have also been
silent in the lead up to this year's session.
"It is not just red states moving to cut taxes," said Hogan. "Governor
Andrew Cuomo has aggressively moved to improve New York's business climate and
cut the corporate income tax on manufacturers to stem job losses in that sector,
and it's working."
Change Maryland, citing Bureau of Labor Statistics figures, issued a report
showing the state has the second-worst decline year-over-year in manufacturing
of any state. Maryland's loss of 4500 manufacturing jobs, a 4% loss, is
eclipsed only by West Virginia which saw a 5.4% decline in the same period. The
long-term decline in this sector transcends governors' administrations. Since
2002, Maryland has lost 33% of its manufacturing jobs, the sixth-worst decline
in the nation.
The dismal trend has only worsened since O'Malley became governor. Since
2007, Maryland lost 20% of its manufacturing employment base, the 10th worst
decline in the country. Over 26,000 manufacturing jobs vanished during that
time.
"It is unacceptable that the state's most powerful elected officials do
nothing with numbers as clear and convincing as these," said Hogan. "These are
the results when economic development is nothing more than cherry-picked pie
charts and bar graphs in the Governor's power point demonstrations."
Just over a year ago, Governor Cuomo forged an agreement with the senate
majority leader and assembly speaker on executive proposals to cut taxes and
create jobs in advance of the 2012 legislative session. The corporate income
tax rate for New York manufacturers was cut to 6.25%. Maryland's rate is
8.25%
New York's decline of year-over-year manufacturing jobs is 1.4%, less than
half of Maryland's decline during the same period.
About the plan to cut the corporate income tax, New York's Democratic house
speaker said the state "wins when manufacturers thrive, so by decreasing their
tax burden, manufacturing companies will be more likely to hire and spur the
economy."
"As he has done on other high-profile issues, O'Malley should follow
Cuomo's lead and build support for manufacturing jobs with the General
Assembly," said Hogan. "I also applaud the minority party for pushing to lower
corporate income taxes and recognizing that over-reliance on government
employment and dismissing the private sector spell economic trouble for
Maryland."
Change Maryland reported on O'Malley's tax-raising legacy which includes 24
tax and fee hikes since 2007, including raising the corporate income tax from 7%
to 8.25%.
Background:
U.S. Dept of Labor, Bureau of Labor Statistics:
O'Malley's Tax and Fee increases:
