Handouts in Maryland

Not to be outdone by Massachusetts' $1 billion life science initiative, the governor of Maryland has just unveiled his own initiative to the tune of $1.1 billion. Following the logic of Governor Patrick, this means that Maryland will soon be the most attractive state for the biotech industry.

On the other hand, if you're like us and you believe industries are attracted by good infrastructure, an educated workforce, low taxes, and unobtrusive regulations then you might think that Maryland's governor just made an even worse mistake than our own.

Patrick Signs Life Sciences Bill

Governor Patrick signed his life sciences initiative into law on Monday. The 10-year $1 Billion dollar initiative is supposed to stimulate the state's biotechnology sector and create more jobs for Massachusetts.

Unfortunately, as the Beacon Hill Institute testified several months ago, the initiative will only burden taxpayers without adding any real benefits to the economy. Politicians have never, and never will be, good at picking winners. Companies like Genzyme and Novartis did not come here because of corporate handouts. Irrespective of any handouts, the biotech industry has already decided that Massachusetts is a great place to locate and expand.

Instead of trying to pick winners, the state needs only to simplify the tax code to make Massachusetts competitive.