Anne Arundel business groups differ on Gov. Martin O?Malley?s plan to fix a mounting deficit, but they agree the consumer likely will feel the pinch.
“Revenue raised by a sales tax increase ends up in the general fund, which is a dark hole,” said Bob Burdon, president of the Annapolis and Anne Arundel Chamber of Commerce. “That money will go in, but nothing will come out to benefit the citizens.”
Business leaders fear jobs could be lost because of tax increases, in particular a proposed tax on services and a 1-cent sales tax increase.
“If we?re talking about helping working families in Maryland, losing jobs due to tax hikes is not a way to help them,” said Claire Louder, executive director of the West Anne Arundel County Chamber of Commerce, which sent letters to its members to mail to state lawmakers calling forat least $400 million in state spending cuts before taxes are raised.
A limited sales tax could find support if the revenue went to a dedicated fund, such as transportation improvements, and had a three-year limit, Burdon said.
“This chamber strongly feels citizens are dissatisfied with the state?s lack of controlling in raising tax revenues,” he said.
Eliminating the proposed tax on services, such as fitness clubs and cleaning services, might help the small-business community digest other tax burdens, said Fran Schmidt, executive director of the Northern Anne Arundel County Chamber of Commerce.
Otherwise, some of the 22,000 potential workers coming to Fort Meade via the Base Realignment and Closure program may not relocate to Maryland.
“We?re trying to draw in workers from Virginia, but if our taxes are higher, they?ll stay there, and we?ll pay the cost for the new jobs without the tax benefit,” Louder said.
