Gov. Martin O’Malley announced last week that the tax will drop to the lowest rate allowed by law beginning Jan. 1. (Subscription required.)
Anirban Basu, a local economist, argued that the state should keep the current rate in place because of the effects of potential federal budget cuts and the state’s dependence on federal jobs.
The group Maryland Business for Responsive Government applauded the decrease in the rate, which it called a burden on businesses, but said state officials are taking too much credit for reduction that is required by law.