Comparative analysis of Maryland tax structure: A last decade review (2013-2024)

Abstract

With a focus on income tax, property tax, and sales tax, this study looks at Maryland, USA's tax system over the last ten years (2013–2024). The study's goal is to look at how these taxes have changed over time and what that means for the state's economy and finances. Maryland is known for having a progressive tax system. Taxes are an important way for the state to pay for public services and infrastructure, like roads, schools, and hospitals. Income tax brackets didn't change much during the study period, but discounts and exemptions did change to represent changes in the economy and government policy. There are some exceptions to the 6% sales tax, and some things, like booze, are taxed at higher rates. Different counties had different property tax rates because of what the local government needed.

  With a mixed-methods approach, the study used both descriptive analysis and multiple linear regression to describe the data statistically. People you can trust, like the Maryland Office of the Comptroller, the Federal Reserve Bank of St. Louis, and the U.S. Bureau of Economic Analysis, provided the data. Some important independent factors that were looked at to see how they affected total tax receipts were GDP growth, inflation, the jobless rate, median family income, and the effect of COVID-19.

  The results show that Maryland's tax collection steadily rose over the decade. This was made possible by stable economic growth and rising median family incomes. But the regression study showed that the independent factors had different levels of statistical significance. GDP and median family income had the biggest effects. The study stresses how important Maryland's smart tax policies are for keeping the state's finances stable and adjusting to problems like inflation and pandemics. This study helps us learn more about state-level tax systems and how they affect the economy by showing how Maryland's taxes work.