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 ...
That's where the "chocolate" in the ice cream originates.
It's not that they're "stupid." That really has nothing to do with it. It's because of the way the liberal mind thinks. Though most liberals have no idea of this, Marxism is based on a way of thinking that seeks to break everything down into its simplest, individual parts, and then by understanding each of those parts, you can understand the whole. The problem is that once you've done that, they don't take the next step... To understand the interaction between those parts. That's why whenever there's a liberal solution to a problem, there are always disastrous "unintended consequences." Because they never look at a problem as a part of a dynamic system. They don't realize (or refuse to realize, is more likely) that for every action, there will be a reaction, and that when you apply a force to a dynamic system, that will cause action somewhere else in the system.
The simple answer is that politicians believed that "the rich" will just "stand and take it" because... Well, why wouldn't they? It's not like people will actually act in their own best interest...
Mark
They’ll start setting up “border guards” and making you pay the state sales tax when you come back in...
I believe that a law was passed that will place an onerous tax on your money should you decide to expatriate and leave the country, taking your fortunes with you. And the Swiss will report you if you try to sneak out.
Mark
Meldrim Thompson, Jr. knew what to do with Massachusetts revenuers.
I believe that would be the “Bowman” side of my tagline.
GEEEEE— Tennessee is HOW close??????
Too bad that couldn’t be a billboard-———Or can it???
Didn’t Massachusetts try to sue New Hampshire for sales taxes on tires that were bought in a store near the border?
How large a margin of ‘border overlap’ do these fools think they can impose?
One of these days, the right is going to realize the exodus of the rich is EXACTLY WHAT THE LEFT WANTS!
If I had the money, I would seriously consider it too...
But is that “fighting”? or “running”?
If you are a rich patriot, I would encourage you to stay and fight... not cut and run.
They can tell us how much of what we earn is to be paid in taxes...
But they cannot tell us how much to earn.
You were obviously thinking about ordinary, hard-working people like us. But this is SOP for people on the other side. Geithner and Emmanuel have already decided to not obey the tax laws that they feel are unfair to them. And democrats have long ignored voting rules they feel are unfair to them by double voting, dead voting, thuggery at polls, etc. The list goes on and on. It is not right one side consistently plays by the rules and the other side just as consistently flouts them.
Your last sentence defines the liberal quandary. Redistribution of wealth is in the best interests of the rich, according to the socialist mind set. You can have long arguments with them about it.
If we have universal health care, you won’t have to buy health insurance for your butler . . .
If we increase the minimum wage, your workers will perform up to the wage they’re paid . . .
If we have more government services, there will be less crime and you’ll live in a better society . . .
It invariably ends on the same principle: If we take more of your stuff, you’ll be happier.
When people of wealth leave they also take jobs with them.....I would think they would take their business with them, therefore leaving a few more unemployed in their wake.....
Because they never look at a problem as a part of a dynamic system. They ...
That really is true. I would phrase it a different way, but the synergy of a society is a subtle, but totally essential characteristic of its civilized success.
Try imparting that to an American high school (or college) kid these days. You touch on a deep sociopathology here.
When I lived in NH the state of Massachusetts put a large appliance company out of business by suing them and seizing their assets. Their store was in NH but they had a warehouse in MA and the state decided that they were luring MA residents across the border to sell them appliances and avoid the sales tax.
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