Virginia and Maryland’s Economic Bright Spots and Challenges: Lee Schalk on Fox 5 DC
What we found over the years is that the states with lower tax burdens, responsible government spending, and worker freedoms are the biggest winners.
ARLINGTON, Va. —Maryland and Virginia are falling behind much of the country in economic competitiveness. The newly released Rich States, Poor States report ranks Maryland 42nd and Virginia 32nd for economic outlook, reflecting ongoing struggles in taxation, spending, and population growth. Lee Schalk, Senior Vice President of Policy at ALEC, spoke on Fox 5 News DC breaking down the areas in which both Maryland and Virginia can improve their economic outlooks going forward.
“This is a report that we’ve compiled for the last 18 years,” said Schalk. “What we found over the years is that the states with lower tax burdens, responsible government spending, and worker freedoms are the biggest winners.”
Maryland’s continued slide has been particularly stark. “Maryland has actually lost more than 260,000 residents on net over the last decade,” Schalk noted. “Unfortunately, Maryland is not one of those states finishing in the top tier. It remains one of the higher-tax states in the nation.”
Governor Wes Moore’s recent tax proposals, including higher taxes on top earners, are also cited as contributing to the trend. “Maryland is seeking to really outdo and continue that trend of high taxing and high spending,” Schalk said. “That will lead to a continued exodus of Maryland residents and businesses.”
Virginia’s outlook, while better, has also declined. “Virginia is falling behind by standing still,” he explained. Schalk cited stalled efforts by Governor Glenn Youngkin to lower income taxes as a missed opportunity. “Unfortunately, he’s really been stymied by Democrats in Richmond.”
Despite these challenges, Schalk pointed to a few bright spots for Virginia: “Virginia remains a right-to-work state, and there are no death taxes currently in Virginia,” he said. By contrast, “Maryland has both estate and inheritance taxes.”
Neighboring states like North Carolina and Tennessee (with no income tax) were praised for reforms that have boosted their economic outlook.
For Virginia and Maryland policymakers, Rich States, Poor States can offer a roadmap to future success. As Schalk noted, lawmakers should examine “the policies that matter as states compete for new residents and job creators.”