Texas vs. Maryland: Opposing Economic Strategies

American Legislator ^ | 9-24-13 | Ben Wilterdink

[ThethoughtsofGreg]

Recently, Texas Governor Rick Perry and Maryland Governor Martin O’Malley had a verbal sparring match on CNN’s Crossfire. Both participants mentioned various statistics and claimed the mantle of economic success for their states. However, the two strategies are nearly polar opposites.

Governor O’Malley’s strategy has been to increase government spending in an effort to create jobs. Unfortunately for Maryland residents, high levels of spending require much higher levels of taxation. Maryland has one of the highest combined state and local personal income tax rates in the nation at 8.95 percent on top earners and its corporate income tax rate is nearly as high at 8.25 percent. Additionally, Maryland is not a Right-to-Work state and still levies both a death tax and an inheritance tax.

On the other hand, Governor Perry has taken a much more hands-off approach to growing the Lone Star State’s economy. Texas focuses on reasonable regulation and limited taxation. In fact, Texas is one of nine states that does not levy a personal income tax on wages. Texas also does not have a traditional corporate income tax rate. It does, however, levy a one percent margins tax on businesses that have more than $1 million in gross receipts. Finally, Texas is a right-to-work state and does not levy a state death tax or an inheritance tax.

[Pharmboy]

Yep...I checked it out, and the highest mountain in TX is more than twice the height of the highest in MD. I learn so much here on FR...

Thanks!

[Night Hides Not]

LOL! I'm not trying to stir up anything...really! My dad lived in Gaithersburg the last 15 years of his life, and my stepbrother and his family still live there.

As in any state, there are areas that are blighted or not so lovely. I simply took exception to the entire state of Texas being called a $hithole. I have two favorite times of the year: spring, when the bluebonnets and wildflowers appear everywhere, and fall, when it's still temperate enough to go to football games in a t-shirt and shorts.

I couldn't live in MD, though, if only for the horrendous traffic.

[central_va]

I have lived in MD and TX, the part of Texas I lived in, the hill country, was way more beautiful than suburban DC.

[BreezyDog]

I don't go near DC or Baltimore unless it's for work or a ball game. I'm on the Chesapeake whenever I can, which is quite often. I live 5 miles up The Severn River from Annapolis in Severna Park. This what I use to fish the watershed:

[Tula Git]

Why is Texas so high? No state income tax. I live in a "wealthy" school district. My property taxes on a $250K house are about 6K. But we pay ZERO in state income tax, whereas we would be paying at least $8K if we lived in Maryland.

Good to hear.

In Maryland you'd have to be earning 6 figures to pay 8k in taxes.

Good on ya.

[Tula Git]

"I live 5 miles up The Severn River from Annapolis in Severna Park."

Absolutely gorgeous area.