The following is an op-ed piece from Delegates Kathy Szeliga and Ryan Nawrocki.

Maryland’s small businesses, families, and retirees are all feeling the squeeze of rising prices and flat incomes, and House Bill 1554—a 2.5% service tax up for debate in Annapolis—only stands to make things harder. We’re firmly against this measure, which we see as a triple threat: it hikes costs for local entrepreneurs, adds pressure on household budgets, and hits retirees on fixed incomes especially hard. Supporters call it a $1 billion bridge for a $3 billion budget gap, but we view it as a bad policy that burdens those least equipped to bear it.

Senate President Bill Ferguson labels it a practical tweak for a service-based economy. We see it otherwise. For small businesses, this tax strikes at essentials—accounting to track earnings, printing for business needs, and truck maintenance to deliver goods. A café owner, for instance, might face higher costs for bookkeeping or supply deliveries, forcing a choice: raise prices and risk losing patrons or swallow the loss and teeter closer to closing. Maryland’s tax climate already ranks 46th per the nonpartisan Tax Foundation, and we’re certain this would drag us even down further, potentially chasing jobs out of state.

Families aren’t spared either. When small businesses pay more, those costs flow downstream. A florist taxed on truck repairs will charge extra for bouquets; a plumber hit with fees on tax prep could bill more for a leak fix. For parents scraping by, this means steeper tabs for food, utilities, and home care—eroding their ability to make ends meet. Then there’s retirees, many living on pensions that don’t stretch like they used to. For them, this tax could turn routine expenses—like hiring a handyman or buying groceries—into budget-busters. A UMBC poll shows 53% of Marylanders have pondered leaving; taxing services they depend on could tip retirees and families alike toward packing up.

The state projects a $1 billion yearly cash grab, but we see it fueling a broader exodus—of businesses cutting staff or shutting down, of families and retirees unable to stay. Democrats tie this to Governor Moore’s budget fix, but we say it’s the wrong tool. Overspending has dug this hole. In 2005, state taxes per person were $4,585; now they’re $10,778—almost double—despite Maryland seeing little population growth to justify such a tremendous tax increase. This bill, alongside all the other taxes piling up, will hurt Marylanders—some will leave, seeking greener pastures elsewhere. That kind of escalation offers no clear payoff for retirees’ security, family stability, or business health. This isn’t workable, and HB 1554 piles on more strain.

Its first hearing was March 12. We’re monitoring it and opposing it outright, believing small businesses, families, and retirees deserve support—lower costs, not added taxes. Tell your Annapolis lawmakers to vote no on HB 1554. Maryland’s most vulnerable can’t take this blow.

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