Blue State Blues: Maryland Businesses Warn Service Tax Will Drive Companies Out of State
14th March 2025
The Washington Poop, a Voice of the Crust.
Dozens of business owners and executives flocked to the Maryland State House in Annapolis on Wednesday to oppose a proposal to tax business services that Democratic lawmakers say could help close a budget gap that is more than $3 billion.
The representatives of small and large businesses alike argued that a 2.5 percent tax on business-to-business services proposed as an alternative to Gov. Wes Moore’s plan to overhaul the state tax system as a way to raise more revenue would eat into their profit margins, raise operational costs, and potentially shutter some companies while driving others out of the state.
“This would be a big gut punch,” said Juliana Buonanno, CEO and founder of a Baltimore-based company called TechSlice that develops software for medical device companies.
The wonderful thing about the U.S. Federal system is that if one state decides to to stupid shit one can just move one’s business to another state, while states compete for business by being more business-friendly. We see this in action as businesses (and people) flow from places like New York and California to places like Texas and Florida.