The Maryland Business Tax Reform Commission recently voted against a proposed method of taxing corporate profits.
Combined reporting, a system that aims to stop businesses from filtering Maryland revenue to corporations in states with lower tax rates, has been highlighted by some as a way to increase state revenue. But, the Tax Reform Commission voted 12-4 that the General Assembly should not pursue the legislation, the Maryland Gazette reports.
Other business organizations have also come out against combined reporting. Some have cited a study issued by the comptroller’s office that showed that Maryland would have lost $13 to $50 million in 2008 if combined reporting was in place, reports the Baltimore Sun. However, the news source also notes a separate report painted a very different picture, claiming the state could have made an additional $170 million if the proposed legislation was in place in 2007.
“We continue to oppose combined reporting,” said William R. Burns, a spokesman for the Maryland Chamber of Commerce, told the Baltimore Sun. “The Maryland General Assembly should reject business tax law changes that would make Maryland less competitive.”
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