The past year has presented unprecedented challenges for many Maryland small businesses, especially restaurants, retailers, and entertainment venues. While our elected leaders have helped provide short-term emergency relief to these businesses, our tax system continues to give an unfair advantage to their large multinational competitors that are thriving during the pandemic.
We have the chance to make a permanent fix this year that closes Maryland’s corporate tax loopholes and helps level the playing field for our small community-based businesses as they recover from the economic impacts of the pandemic.
Large multinational corporations like Amazon and Walmart can use legal accounting gimmicks to avoid Maryland taxes by shifting profits on paper to out-of-state subsidiary companies. In a typical year, about one-third of the 150 largest corporations operating in Maryland paid ZERO in state income taxes. This is unfair to our local businesses who pay their fair share for the roads, schools, emergency services, and other things that help make Maryland a great place to do business.
Maryland is lagging behind other states that have already closed these tax loopholes and are generating hundreds of millions of dollars a year to support community priorities — 28 states and the District of Columbia have already taken this step.
The vast majority of Marylanders — 78% according to a recent survey — agree that Maryland should close these loopholes. So do many small business owners and community leaders like the Baltimore Sun Editorial Board, which recently wrote that “lawmakers ought to be a little embarrassed that Maryland is behind the curve” in closing corporate tax loopholes.
However, big business has a powerful voice in Annapolis. Your elected representatives need to hear from you. Email your state senators today and tell them you support Senate Bill 511, the Corporate Tax Fairness Act.the responsibility for the public services we all rely on, like good schools, transportation, and public health.