Higher profits have taxman smiling


October 19, 1995

Your hunch was right. Your employer is making a lot more money. You're not.

Thanks to higher profits, tax collections from Maryland corporations soared by 12.6 percent during August and September, compared with the same months last year.

By contrast, personal income tax received from Marylanders rose only 4.6 percent. The $575.3 million collected in personal income tax for the two months was actually 2.6 percent less than what state budget gnomes had expected it to be.

Corporate tax receipts, on the other hand, are 2.2 percent ahead of expectations.

Unfortunately for budgeteers, corporate income tax collections for August and September came to only $60 million, little more than a 10th of the haul for personal income.

Sales tax collections are 2.1 percent ahead of last year for August and September, although 2.6 percent below budget estimates. But some niche taxes and other revenue -- franchise tax, insurance tax, lottery sales, traffic fines -- have helped make it up.

Budgetwide, "you're only down by about $4 million on a base of $1.2 billion," a state spokesman said.

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