Posted on 05/26/2009 10:41:34 AM PDT by Mikey_1962
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
(Excerpt) Read more at online.wsj.com ...
Any activity you tax, you will decrease.
Any activity you subsidize you will increase.
Even when account for the recession, they have lost more than they would ever gain.
The poster boy democrat politician should be Homer Simpson..
But nooooooooooooooo! They lacked the courage of their convictions!
Previously discussed at http://www.freerepublic.com/focus/f-news/2258251/posts .
...just like clockwork.
So that sound I’ve been hearing over the past year was shrugging!
Haw-HAW! Democrats lack a basic understanding of simple economics!
Seriously, you guys invented a whole bunch of philantorpy programs designed to make you feel good about spending other people's money to lift up the poor. How much lifting can you now do with resources slashed because the rich people you volunteered to pay for it moved away?
“The poster boy democrat politician should be Homer Simpson.”
I don’t know, I think Homer has some core values under all that stupid, now Ralph Wiggum on the otherhand...
“Millionares leave because we raised their taxes? That’s unpossible!”
They can always just raise taxes on the poor...
I suppose soon laws will make it difficult for the wealthy to leave. They’ll just have to sit there and be fleeced.
I think you needed a Homer “DOH” there instead of a HA HA.
Tax the rich/feed the poor/till there are no rich no more
Tax the people who can most afford to move away. Brilliant.
Let me just take a second to say.....HA HA!
Heading for Galt’s Gultch. 3M has already done this here in MN as well.
The State can just pass a new law requiring 1000 more people to earn a million dollars.
Then everything will be alright.
The next line is a total nonsequitor: "I'd love to turn you on...", but they never complete the original thought. To wit:
Tax the rich/feed the poor/till there are no rich no more, and then the poor will starve.
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