Murphy Outlines Three-Year Plan to Eliminate Maryland’s Corporate Income Tax….

….Proposes Reductions in Personal Income Tax

Crofton, Maryland – Brian Murphy, Republican candidate for governor of Maryland, continues to propose solutions to grow Maryland’s economy. Today he laid out a proposal to eliminate Maryland’s high 8.25 percent corporate income tax. In spite of Maryland’s ideal location and talented workforce, unemployment remains at record levels. Murphy sees the state’s high taxes and anti-business environment as the causes.

“The governor is the State’s Chief Executive Officer. Marylanders are suffering from a lack of confidence in our elected officials and from a lack of certainty in our tax structure. As the only candidate who has pledged not to raise taxes, I have aligned myself with Maryland’s families and small businesses. Today, by proposing a tax plan that will grow our economy, I am the only candidate who is inviting families and businesses to consider making Maryland their home,” said Maryland.

“Our 8.25 percent corporate tax is one of many failed policies killing our economy. And when we consider that the vast majority of Maryland businesses are small businesses, and corporate income tax represents only 2 percent of the state’s tax receipts, it makes us wonder why we have the tax at all. As a small business owner, I can tell you firsthand the burdens of operating in Maryland. We need to empower business owners to grow their operations in our state,” said Murphy.

“Maryland has the best labor force and infrastructure in the country. But our tax structures make it impossible for us to compete. My goal is the phased elimination of our corporate income tax in three years. In the first year, we will balance and streamline our budget without raising taxes. This will put our economy in a position to recover and grow. In the second year, we will reduce the corporate income tax rate by 50 percent, funded by organic growth to preserve revenue neutrality. This will give new and existing businesses an incentive to grow their Maryland operations. In the third year, we will eliminate the corporate income tax all together,” said Murphy.

“Finally, after we make Maryland competitive for small businesses and families, we will revisit our personal income tax rates. Personal income taxes make up a greater portion of our state’s tax receipts, so eliminating them completely is not immediately possible. But I am committed to growing Maryland’s economy. Reducing our personal income tax rates, even slightly, will create a significant benefit for Maryland families,” said Murphy.

Brian Murphy and Robert Ehrlich are running in the Republican Primary on September 14. Governor Martin O’Malley is running in the Democratic Party Primary on September 14. The winners of the respective parties’ elections will square off against each other in the November 2 General Election.

Brian Murphy is a successful Maryland businessman with a B.A. in Economics from the University of Maryland and an M.B.A. from the University of Pennsylvania’s Wharton School. He is founder of the Plimhimmon Group, whose first investment, the Smith Island Baking Company, has been featured in The Washington Post, the Wharton Magazine, the Baltimore Sun, Businessweek, and other publications for its principled approach to job creation in Maryland.

For more information on the Brian Murphy for Governor campaign, see www.brianmurphy2010.com. To set up a press or media interview, contact Fran Griffin at fran@brianmurphy2010.com. To volunteer, contact Sam Hale at sam@brianmurphy2010.com or 301-509-1437.