Wal*Mart: Maryland is Bad for Business
Maryland has dictated that 8% of Wal*Mart’s revenue be directed by the Maryland legislature. Continuing a taxing tradition.
In the mid 90’s Your Business Blogger was President of a (very) modest software company in Maryland. Looking hard for good people and profits.
Back then I asked Rudy Lamone, a Professor of Management Science about Maryland’s confiscatory taxes and thin talent pool. Would he say there was a causation? Or mere correlation?
I was a mite critical of the state. Almost impolite to the University of Maryland employee.
Dr. Lamone’s patient answer surprised me. He didn’t disagree: high taxes drove some talent and business south to Virginia. That was 10 years ago.
courtesy Jack YoestMaryland’s anti-business practices continue today. George Will, Ph.D., writes, Shoplifting as Governance: Maryland’s Lawmakers’ Unethical Grab at Wal*Mart’s Revenue:
Organized labor, having mightily tried and miserably failed to unionize even one of Wal*Mart’s 3,250 stores, has turned to organizing state legislators. Maryland was a natural place to begin because it has lopsided Democratic majorities in both houses of its legislature.
Even the Washington Post, no friend of capitalism reports on the Wal*Mart tax as:
a legislative mugging masquerading as an act of benevolent social engineering.
Maryland: Hight Taxes; Scarce Talent.
The moving company published a nifty chart showing where people are moving from. And where they are moving to:
United Van Lines Releases 2005 Migration Study
The statistics are among the findings of United’s 29th annual “migration” study that tracks where its customers … moved from and the most popular destinations.
And most important:
Maryland … continued its 13-year outbound tradition [of people moving out].
An outbound tradition? These guys at United Van Lines are funny.
Anyway, it looks like the tradition will continue. Rumors are that Wal*Mart’s proposed new Maryand distribution center with its 800 jobs will move to a business friendly state.
Was this helpful? Do comment.
Consider a free eMail subscription for this site.
Thank you (foot)notes:
Dr. Rudolph Lamone won National Entrepreneur-of-the-Year Award (Baltimore) in 1996. He currently serves as Professor Emeritus of Management Science at the Robert H. Smith School of Business at the University of Maryland.
George Will studied at Trinity College in Hartford, and Oxford and Princeton universities. He taught political philosophy at Michigan State University and won the Pulitzer Prize in 1976.
He is the only reason to watch This Week on ABC.
The Will citation appeared in the Washington Post on 19 Jan 2006.
Unpaid Endorsement: If your are moving, contact Ellen Christian, Manager of Business Development & Marketing with Suddath Relocation Systems, an agent for United Van Lines. Call her at 1.800.766.6116
It used to be enough to take the high road and hope the problem would eventually go away. But with the advent of … the willingness of special interest groups to engage in increasingly hostile tactics, a new set of rules are called for. Traditional PR doctrine is woefully unprepared to fight these battles.
Jeff Cornwall has tax friendly states.