Wednesday, January 20, 2010
Comptroller Franchot Briefs Maryland Chamber Members
Maryland Comptroller Peter Franchot met with members of the Maryland Chamber of Commerce last week during Business Day in Annapolis where he discussed his views on the economy and how to encourage its recovery. He said that the state should avoid tax increases for the next two years, and tackle spending reform with the aid of the private sector.
Franchot said the economy is too fragile for any new taxes to be put in place for the foreseeable future.
“There is too much uncertainty, and the business community cannot afford that kind of burden right now given the complexity of the recovery,” he said. Franchot said that not passing any new taxes, not just for this session, but also the following session would enable a more thorough economic recovery. “I really think we have to realize that if we take our foot off the peddle, we’re going to go right back into this mode,” he said.
He also added that taxes get in the way of spending reform because they impact the business community, which needs to have a seat at the table in reform discussions.
“In my view, the $32 billion we spend in this state every year needs to go through a top to bottom scrubbing and reform. I’m in favor of spending reform where the business community helps us figure out how to get better results from the dollars that the taxpayers give us to use for these different agencies,” he said.
Franchot also touched on the “millionaire’s tax” and stated that that tax and Maryland’s high corporate income tax concerns him, but he thinks Maryland will draw businesses if the state promotes a cohesive and organized economic strategy.
“I think Maryland lacks a real substantive economic strategy,” he said. “…It will be difficult work that will take frankly 6 months, 12 months, 18 months. And it requires the full cooperation of the private sector because you know how to manage in economic downturns.”
