Maryland Residents Have Spoken: No Tax Breaks for Casinos at National Harbor

On Friday July 13, The Taxpayers Protection Alliance (TPA) announced the results of its phone survey on tax rates and building a casino at National Harbor in Maryland.  The results showed that state residents remain skeptical about plans to build the casino and give tax breaks to out-of-state casino operators.  The most common response to the question on how a respondent felt about the National Harbor proposal was “It is wrong to lower taxes on casinos while taxes on Maryland families are going up.” 

This corporate welfare debacle started in May when the state legislature passed a massive income tax increase that will hit many families that are far from “rich.”  The new, top state-local income rate will rise to 8.95 percent — the fourth-highest rate in the nation.  This hike will not just affect individuals and couples; small business owners’ profits are taxed as personal income.   Additionally, the state increased the marriage penalty for working couples, which will significantly hit families with children, and also shifted pension obligations from the state to localities.   Since then, Governor O’Malley has been trying to convene a special session to work out a plan to give a tax break for casinos, particularly a casino at National Harbor.  The plan calls for reducing the tax rate on gambling revenue from 67 percent to about 52 percent.     

The results of the survey reinforce the notion that at a time when the legislature is imposing greater tax burdens on working families, people are not buying the argument that casino operators deserve special treatment and tax cuts.  These policies will do little to reverse the trend of Maryland residents leaving the state.  Maryland deserves a better tax policy and business climate.

The survey, conducted from July 10-12, revealed the following:

 “It is wrong to lower taxes on casinos while taxes on Maryland families are going up,” was the most common response to the question on how a respondent felt about the National Harbor proposal.

Less than one-quarter of respondents expressed outright support for a National Harbor casino.

Only five percent of respondents thought giving tax breaks to casinos constitutes a “fair” tax policy.

Governor O’Malley should pay close attention to public opinion.  The survey results underscore that now is not the time for another special session on this issue.  Maryland continues to face more pressing issues, and this flawed proposal should not proceed forward.