Maryland State Wire

In an opinion piece for The Baltimore Sun, Mike O’Halloran, the Maryland State Director of the National Federation of Independent Business (NFIB), discusses the potential adverse effects of state tax increases on small businesses. He expressed concerns in response to comments made by Senate President Bill Ferguson.

O’Halloran noted, “When Maryland Senate President Bill Ferguson said last month that budget pressures would have to reach an ‘extremely high bar’ to trigger tax increases, Maryland small business owners breathed a sigh of relief." He referenced a recent conference of state and local officials where Ferguson's comments were made, suggesting that the remarks could foreshadow the upcoming budget negotiations during next year's General Assembly session starting in January.

Further, O’Halloran highlighted the looming uncertainty facing small businesses due to a potential federal tax hike next year. He stated, “To make their uncertainty worse, Maryland small businesses are facing a 20% tax hike next year unless Congress makes the Small Business Deduction permanent.” He emphasized that not knowing whether a federal tax increase will occur makes any state tax increase inappropriate at this time.

O’Halloran believes the prospect of a federal tax hike has affected how business owners are planning for the future. According to him, small business owners are deeply concerned about affordability and stability in light of these potential changes.

To read O’Halloran's full commentary, follow the link to The Baltimore Sun's website.