MARYLAND BRIEFING
MARYLAND BRIEFING
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STATE FINANCES
Half of Big Firms Fail to Pay Taxes
Advocates of overhauling Maryland's corporate tax structure pointed to new information yesterday showing that about half of the largest companies doing business in the state did not pay corporate income taxes in 2005.
The figures released by the comptroller's office were preliminary but showed that 68 of the largest 132 for-profit companies had not paid income tax in 2005. About 40 percent of a similar pool of companies paid no taxes in 2004. Companies pay taxes based on net income allocable to Maryland.
With the state facing a budget deficit of nearly $1.5 billion next year, Sen. Paul G. Pinksy (D-Prince George's) renewed his call to move to a system of "combined reporting," which makes it more difficult for companies to avoid taxes by sheltering income in subsidiaries, including those based out of state. "By using loopholes, shelters and other gimmicks, these big companies are avoiding paying Maryland taxes," Pinksy said. "It is appalling that Maryland is even discussing raising the sales tax when it hasn't yet collected this lost revenue from the corporate sector."
Rick Abbruzzese, a spokesman for Gov. Martin O'Malley (D), said the governor is interested in working with lawmakers to ensure corporations pay their fair share of taxes but would not commit to backing combined reporting.
-- John Wagner
MONTGOMERY COUNTY
2 Va. Men Killed in Beltway Crash
Two Virginia men died after a crash about 1:30 a.m. yesterday on the Capital Beltway's outer loop in the Cabin John area, just south of River Road, when a car hit a disabled pickup stopped on the shoulder, Maryland State Police said.
The driver of the Dodge Neon, David Castro of Alexandria, is believed to have been speeding when he lost control of his car, police said. Castro, 22, and passenger Mateo Rios, 21, of Falls Church were killed. A second passenger, Melvin Martinez, 22, of Falls Church, was taken to a hospital with injuries that weren't considered life-threatening.
The occupants of the pickup were not injured.
