Is it something in the water? While Maryland is in the midst of a fiscal crisis, drowning in a $3 billion budget deficit, its neighbor Virginia is thriving with a $3 billion surplus. The urgency of the situation is apparent. How can two states so close in geography be so far apart in a fiscal sense? It boils down to the priorities of their governing political parties — what you tax, how you spend and whether your government is focused on growth or pandering. Spoiler alert: Virginia is winning, and Maryland would do well to take notes.
First, let’s talk taxes. Maryland has some of the highest taxes in the nation. Our tax policies burden families and drive businesses to less taxing locales (hello, Virginia). Retirees and high-income earners are packing their bags, unwilling to bear the brunt of Maryland’s relentless tax hikes.
Meanwhile, Virginia has embraced tax relief, whether through its agenda of eliminating the tax on service worker tips or by cutting personal taxes for middle-income families. Their approach has not only lightened the load on residents but attracted businesses in droves. Low taxes and streamlined regulations have positioned Virginia as a magnet for economic activity. Maryland, perhaps it’s time to rethink the tax assault on businesses and families.
Maryland’s spending can be compared to a shopping spree on someone else’s credit card. Lofty programs like the Blueprint for Maryland’s Future throw billions on education reforms that promise much but deliver little in measurable outcomes. Then there’s the $1.25 billion-per-year climate change agenda, courtesy of Gov. Wes Moore’s executive order and the Climate Solutions Now Act. Sure, saving the planet sounds great in theory. Indeed, it rakes in political donations from special interest groups, but is it worth the risk of financially crippling your state and placing even greater strain on ratepayers? Marylanders shoulder these high utility costs directly, while Virginia takes a more measured approach to spending, focusing investments on infrastructure and education that yield tangible, long-term benefits.
Virginia applies the same logic a fiscally responsible household applies to its budget but on a statewide scale. Public-private partnerships ensure value in infrastructure projects, and growth industries like tech and defense are nurtured to deliver economic returns. Unlike Maryland, Virginia doesn’t commit to unaffordable programs just to virtue-signal. It’s a simple formula: Spend on what works, avoid what doesn’t.
Here’s the kicker. Virginia’s budget surplus is not by accident and is a result of intentional conservative policies to encourage growth. By lowering taxes, the state has created an environment that incentivizes economic activity. Partnering with business and investing in the classroom has strengthened Virginia’s workforce and advanced its business competitiveness. As a result, Virginia’s economy is not merely keeping up, it is running ahead.
Compare this to Maryland’s sluggish economic performance. With government spending outpacing revenue growth nearly two to one, Maryland struggles to stay solvent. Job growth is stagnant, and business expansion is stifled under miles of red tape. It’s no wonder businesses opt for Virginia, where opportunities abound, taxes are lower and the state actively courts entrepreneurs rather than scaring them off.
If Maryland legislators want to pull the state out of its deficit-driven nosedive, they should look to Virginia for inspiration. Maryland’s deficit disaster is self-induced. It is time to realize that policy choices matter. Maryland must stop treating taxpayers and businesses as endless revenue sources and start thinking like Virginia, where common-sense governance delivers prosperity. It’s time for Maryland to put politics aside and adopt fiscal responsibility that will result in a brighter future for its citizens. Pay attention, Annapolis — the path to a brighter fiscal future is just a river away.
Del. Matt Morgan ([email protected]) is a Republican delegate representing District 29A of St. Mary’s County since 2015. He is assigned to the House Health and Government Operations Committee.
