Spice giant McCormick & Company is warning Maryland lawmakers that a proposed 2.5-cent tax on business-to-business services could jeopardize its commitment to the state. The tax, intended to help close a $3 billion budget deficit, would significantly increase costs for the 140-year-old company, potentially forcing it to relocate operations outside Maryland. Economist Anirban Basu warned that the tax could have broader economic consequences, leading to business shrinkage, expansion elsewhere, and job losses. Basu criticized the state’s regulatory and tax environment, stating that high tax rates and excessive regulation are driving businesses away. McCormick’s potential relocation could signal to other companies that Maryland is not business-friendly. The company indicated that any part of its business not tied to its physical plant could be moved, prompting concerns about job losses and economic impacts. Basu urged lawmakers to reconsider the proposed tax, stating that Maryland needs to become more appealing to businesses rather than driving them away.
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