Posted on 05/26/2009 5:20:28 AM PDT by reaganaut1
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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.
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" [and can move there].
(Excerpt) Read more at online.wsj.com ...
Stupid is, as stupid does.
Just a matter of time before states start passing “reciprocation” laws (to be upheld by the USSC, of course) stating that if someone leaves a state, they owe taxes to their former state AND their new state for a period of 5 years (or some other arbitrary length of time).
Who’d live there anyway? It’s an armpit!
Let the Galting begin!
We will just see if the middle class will pick up the tax burden or will pick up and move as well. Atlas is shrugging in localized blue states, and they are heading for galts gulch.
Why does the state comptroller have to CONCEDE anything? It gives the impression (probably accurately) that the state is more interested in soaking the "rich" than in balancing the books or accurately reporting finances.
Outside of Montgomery, Prince Georges and Baltimore counties, as well as Baltimore itself, the state ain’t half-bad. In fact it’s downright pretty.
However, it’s very easy for the rich and not-so-rich to leave for lower tax states like VA, WV, and maybe even PA, and not substantially impact their quality of life, commutes, etc.
...my wife and I fled Maryland 3 years ago and retired in rural NC....the county we live in now is 98% white...we have good schools/honest government/low crime/low taxes...what a difference from the Old Line State!
In honor of the 44th President of the United States, Baskin-Robbins Ice Cream has introduced a new flavor; “Barocky Road.”
Barocky Road is a blend of half-Vanilla, half-Chocolate, and surrounded by Nuts and Flakes. The Vanilla portion of the mix is not openly advertised and usually denied as an ingredient.
The Nuts and Flakes are all very bitter and hard to swallow. The cost is $100.00 per scoop.
When purchased, it will be presented to you in a large beautiful cone, but then the Ice Cream is taken away and given to the person in line behind you.
Thus, you are left with an empty Wallet, no change, holding an empty cone, with no hope of getting any Ice Cream.
Are you feeling stimulated?
If that were to happen they would leave the country and take their fortunes with them. I believe the Swiss would welcome them with open arms.
Life is good at those beach resort communities in Delaware
And Florida in the fall/winter/spring with a few vacation weeks back in MD in the summer- would work for me
Millionares also have a lot of freedom to adjust their income because they are often owners of their own businesses. Instead of taking money out as income, they can choose to put the income back into their business, cutting their income and taxes, and waiting for a better time to take it out again.
excellent
ping
One of the “boxes of liberty” is the Moving Box.
The left has tried to seal this box by making all policy at the federal level so that you cannot escape their despotism by moving to another state.
Time for the states to put up some walls and not allow unconstitutional laws to affect their citizens.
He, the Zero is a piece of s===
Funny.Also,the nuts are small.
Didn’t a California state legislator try to introduce that recently? I haven’t heard another thing about it.
There is going to come a time, probably sooner not later, when people will refuse to obey laws that they feel are unfair or detrimental to them whether or not the courts uphold them. If enough peons feel that way, watch out.
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