By Frank Gunsallus- Guest Writer
The Baltimore Sun piece “West Virginia offers a wakeup call for Maryland’s economy” by Mary D. Kane of the Maryland Chamber of Commerce nails it: neighboring states are actively poaching Maryland businesses. Thank you, Mary, for sounding this urgent alarm for the ‘Free State.’
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With federal employees forming a significant portion of our workforce—potentially at risk under President Trump’s administration—Maryland cannot afford to lose businesses to sky-high taxes, stifling regulations, and sluggish policies. Out-of-control spending and rising costs are driving an exodus of businesses and taxpayers. Maryland must act with bold reforms, and West Virginia’s playbook offers clear lessons.
Maryland’s 2025 budget (House Bill 350, House Bill 352, signed by Governor Wes Moore) unleashed the largest tax increase in state history: $1.6 billion in new taxes and fees to tackle a $3.3 billion deficit, after burning through a $5.5 billion surplus in just a few years. A looming 3% tech tax on data and IT services (cloud computing, software development, IT consulting) is projected to raise approximately $500 million annually but threatens around 15,300 businesses and 99,000 jobs. Tech firms like BigBear.ai and Blackpoint Cyber have already fled to Virginia and Colorado, citing high costs. This tax will hit any business reliant on tech services. Add to that new income tax brackets (6.25% for $500,000+, 6.5% for $1 million+), a 2% capital gains surtax for incomes over $350,000, a local tax cap increase to 3.3%, and higher excise taxes on cannabis (9%), sports betting, and vehicles (to name a few). Maryland’s 8.25% corporate tax—higher than West Virginia’s 6.5%—and slow permitting processes further cripple its competitiveness, ranking us 49th in job growth (0.6%) and 47th in cost of doing business.
West Virginia, by contrast, is growing. The Nucor steel plant in Mason County, a $3.5 billion investment creating 800 jobs, was secured in 2022 under then-Governor Jim Justice with $300 million in incentives, showcasing West Virginia’s business-friendly edge before Governor Patrick Morrisey took office in 2025. Morrisey’s policies are doubling down: the Universal Licensing Act (Senate Bill 458) lets professionals like doctors and engineers work without extra exams, boosting jobs and healthcare access, while Maryland’s licensing delays push talent away. West Virginia’s microgrid program (House Bill 2014) uses coal and gas to lower energy costs—Maryland’s are 20% above the national average—and fund tax cuts. Infrastructure investments, including $150 million for highways, $125 million for labs, and $45 million for cybersecurity training, support projects like Nucor and Form Energy’s 750-job battery plant in Weirton. West Virginia’s streamlined government (House Bill 2008, House Bill 2009) cuts red tape, while Maryland’s complex regulations hinder growth.
Maryland’s government has created a recipe for disaster: runaway spending, a ballooning deficit, and crushing taxes are squeezing businesses and taxpayers until they flee. People can only take so much! With federal jobs at stake, taxpayers and businesses leaving, Maryland must follow West Virginia’s lead—lower taxes, faster permits, and smart investments—to save its economy.
ABOUT THE AUTHOR:
Frank Gunsallus IV is the former Town Council President of Easton, Maryland. A committed member of his community, he writes about governance, faith, and civic life, with a focus on fostering thoughtful dialogue and meaningful change.
