A couple of days ago, we took a closer look at the tax increases Maryland Gov. Martin O’Malley hopes to make in an effort to fix the state’s $1.7 billion budget shortfall.

Now comes news that a groundbreaking coalition of Maryland business groups has chimed in on the governor’s proposals, saying that an increase in the state’s corporate and sales tax rates could result in significant job losses.

According to news reports, the study, titled Economic and Fiscal Impact Analysis of Maryland Tax Policy Options, claims that about 2,400 jobs would be lost in Maryland by 2012 if the corporate tax rate is increased from 7 to 8 percent, as proposed by O’Malley, and that 9.5 jobs would be lost for every $1 million in additional revenue raised by increasing the sales tax rate from 5 to 6 percent.

• Read the report in its entirety on the Maryland Chamber of Commerce’s Web site.

“We understand the state’s in a position where it’s going to have to raise revenue,” MACPA Executive Director Tom Hood told the Baltimore Business Journal. “We hope the state does that in the right way.”

We’ll certainly be hearing more opinions in the weeks and months to come. It’s a perfect prelude to CPA Day in Annapolis, when MACPA members take their legislative messages directly to the General Assembly. The 2008 event is scheduled for Jan. 23; get details here.

In the meantime, tell us your opinion: What is the right way to raise revenue? By raising taxes? Cutting expenses? A combination of both? What would you suggest?