Bend over.
Maryland “Freak State” PING!
I think Va. should have a special tax on all people from Md. moving who move in.
The government (state and federal) is attempting to leach every cent out of the populace they can in order to cover the huge deficient compiling daily by the Obama regime.
They won’t have to move very far to be ex-Marylanders, it ain’t a big state
This will work of course because people who are smart enough to make 1/2 M are too stupid to figure out how to establish residency in nearby states while maintaining a weekend home in Md.
Punishing people for being productive has always been a great idea. That has worked so well for California, Michigan, Louisiana and so many other democratic paradises...
Sure. Ask the UK and Kalipornia how much they have reaped from tax increases.
They will never get the revenue. The rich can afford to move and/or hire tax attorney to funnel money.
“half Millionaires tax” What is next the “You got a dollar in your pocket tax” Knock it off already with the taxing
“Marylanders making $500K may pay a whole lot more tax”
Let me help a bit with the headline:
“SOME Marylanders making $500K may pay a whole lot more tax”
Others will not, they will either:
1) Move to cheaper states
2) Earn less reportable income
3) Better hide their income
As Maryland will soon find out Tol, people with money have options, and that if you REALLY want to increase government revenues, then you must go after the Middle Class (who have far fewer ways to respond).
High earners in the private sector have talents that are in demand, which allow them to move to another state with more sane tax laws. This is something politicians and public sector unions demanding high taxes always overlook, since the only talent they have is finding ways to confiscate other peoples money.
“The last-minute amendment added to the across-the-board tax increase that the Senate approved in favor of a proposal by Gov. Martin O’Malley, a Democrat, to limit personal exemptions and itemized deductions on the top 20 percent of earners.”
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top 20%? I think it’s getting time for me to flee Maryland and go back to my native state of Pennsylvania. It wouldn’t be that much of a commute back to my job in the People’s Republic of Maryland and I understand that PA doesn’t apply their state/local tax to pension income.
Additional benefits would be the ability to vote in PA & have my vote actually mean something and the ability to gas up in PA to avoid the new 6% sales tax O’Malley is proposing to apply to gasoline sales.
And, not only will the $500MM estimate be more like a $500MM loss, it will also be a job killer (aka job re-locater), as many of these "half-millionairs" have payrolls.
.
Maryland couldn't balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."
One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.
No doubt the majority of that loss in millionaire filings results from the recession. However, this is one reason that depending on the rich to finance government is so ill-advised: Progressive tax rates create mountains of cash during good times that vanish during recessions. For evidence, consult California, New York and New Jersey (see here).
The Maryland state revenue office says it's "way too early" to tell how many millionaires moved out of the state when the tax rates rose. But no one disputes that some rich filers did leave. It's easier than the redistributionists think. Christopher Summers, president of the Maryland Public Policy Institute, notes: "Marylanders with high incomes typically own second homes in tax friendlier states like Florida, Delaware, South Carolina and Virginia. So it's easy for them to change their residency."
Hey SoL!
Saw this article and figured I’d *ping* you, this is going to mean an extra chunk out of you come tax time, isn’t it? ;)
I remember back in the 70’s when I returned from an overseas trip and the guy in customs asked me “have you traveled to any Communist countries” and then looked at my passport and said “oh wait, you’re from Maryland? you LIVE in one!”
simple solution
MOVE
I guess Maryland’s “millionaire” tax didn’t work out, so now they’re going after people who make $500K. Rats gotta tax!