Ernst & Young analyzed the economic and fiscal impacts of possible changes to Maryland’s state tax policy structure that were under public discussion using the economic and policy REMI model for Maryland to estimate dynamic feedback effects. The modeling of the dynamic impacts provided new information about the economic impacts of state tax changes that were not provided in the Fiscal and Policy Notes prepared during the legislative process. The results of the analysis determined that Maryland businesses would pay a significant share of the increased taxes under most of the evaluated options, changes to corporate taxation had the highest cost of all of the policy options in number of jobs lost per $1 million of tax revenue raised, and the incidence of jobs lost across the sectors of the economy varied for each tax option.
Ernst & Young – Economic and Fiscal Impact Analysis of Maryland Tax Policy Options [full PDF]
