Notes from reporter Pete Hurrey: Today’s article, the second in thebaynet’s economic series, features excerpts from Maryland Comptroller Peter Franchot’s speech, State of the Treasury, in which he identifies economic problems and solutions specific to Maryland. The article concludes with Maryland business owners comments taken from a PNC Financial Services survey.
Computer tax not good for Maryland
Maryland Comptroller Peter Franchot addresses issues he feels threaten the Maryland economy as much, or more, than the general economic malaise found throughout the United States.
“I am particularly troubled by the expansion of the Maryland sales tax to computer services. I spoke out in public opposition to this proposal when it was rammed through during the closing days of the special session, and I feel the same way today. This technology tax tax, if allowed to stand, will erode Maryland’s competitive advantage in the knowledge-based economy.
“The computer services tax will take a disproportionate toll on those small and independently-owned businesses that are the backbone of strong communities. Furthermore, the way in which it was adopted will inevitably diminish Maryland’s hard-earned reputation as a good place to do business.
‘It is in this spirit of concern that I call upon my friends in the General Assembly and the governor to repeal the computer services tax, and call upon each of you in this room to join me in this effort. The last thing we need is another tax increase, especially one that will undermine our knowledge- based economy and damage our long-term economic success.
“Furthermore, I believe that we must acknowledge that the sweeping changes to Maryland’s tax laws – which resulted from last fall’s special session – have only added to this (the state’s) climate of unpredictability.
“As you know, I publicly objected to the idea of writing complex tax legislation in a frenetic and overheated political environment. Significant tax increases were essentially drafted behind closed doors and adopted without the benefit of substantive analysis, meaningful public hearings or consultation with stakeholders. “
Slot machines unsound, fiscally imprudent
‘I am also profoundly frustrated by our state’s inability to move beyond this divisive and time-consuming obsession with slot machines. As a result of the special session, Marylanders will now have to endure months of negative advertising by outside interest groups before they vote in November on the legalization of slots. It is hard to believe that the great state of Maryland stands one step away from opening its door to the national gambling industry and setting us on an economic course that is neither sound nor fiscally prudent.
‘It has been proven, in state after state after state, that slot machines offer nothing more than false hope to desperate communities. They have destroyed families through addiction, bankruptcies and crime and have left governments scrambling to cover their enormous social costs by any means necessary.
“They have driven small businesses out of existence and left Main streets across this country a boarded-up shell of what they once were.
“They have repeatedly failed to deliver on the promise of better schools, quality health care and a healthier environment and, instead, have forced their host communities into a desperate spiral of expanded gambling and higher taxes.
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