Not that we needed any more proof, but I thought this was nice. From the Wall Street Journal.
Millionaires Go Missing
Maryland's fleeced taxpayers fight back.
Here's a two-minute drill in soak-the-rich economics:
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 %26quot;willing and able to pay their fair share.%26quot; The Baltimore Sun predicted the rich would %26quot;grin and bear it.%26quot;
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 %26quot;substantial decline.%26quot; 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 %26quot;way too early%26quot; 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: %26quot;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.%26quot;
All of this means that the burden of paying for bloated government in Annapolis will fall on the middle class. Thanks to the futility of soaking the rich, these working families will now pay Mr. O'Malley's %26quot;fair share.%26quot;
Does Maryland's experience prove once more that taxing %26quot;the rich%26quot; is a loser and that incentives matter?
“Lets give them all Tax Breaks so they will all come back Because that was working so well my Guess is they lost more Money selling there homes than they would have payed in Taxes”
Sorry FRED, they didn’t sell anything, they just changed their state of residency so that they no longer pay income tax in Maryland.
Does Maryland's experience prove once more that taxing %26quot;the rich%26quot; is a loser and that incentives matter?
At this point %26quot;the rich%26quot; is anyone not on welfare
I doubt the wealthy will get much sympathy from any one who has to work for a living.
It is the way of the left wing idiot loon party. They are members of the brigade.
It will be ignored. It doesn't match the class identity template that the liberal progressives push.
Indeed what will America do without its rich and famous. Who is gonna run the multinational companies. Who will give us have nots jobs to subsist. We should all run to Mexico!
Get a grip.
9% tax are you sh@!@^$!! me?
If those people still own residence in MD they will end up paying a lot more for not filing. People try these games with the states, especially millionaires. They could end up in worse situation than if they just paid the taxes to begin with, but they still do it. Also you will always see a reduction in millionaires during a recession.
Yes and the same thing is happening in New York right now. Millionaires are packing up and moving..
Millionaires leaving? Who cares?
You're citing the Murdoch Street Journal. I give credit to ol' Rupert because he loves newspapers. If only he loved journalism. Next time, cite a source that gives a damn about the truth. Like in California, where a bunch of right-wing activists have refused to let the legislature raise taxes to the point where services can be properly funded.
Lets give them all Tax Breaks so they will all come back Because that was working so well my Guess is they lost more Money selling there homes than they would have payed in Taxes
But hasn't the last eight years proven that simply %26quot;providing incentives%26quot; is a loser? Perhaps the problem lies with Florida, Delaware, South Carolina and Virginia rather than Maryland.
The problem is not the rich, or those that %26quot;work%26quot; as you call it for a living. It is those not working. Welfare, health care, and food stamps destroy our economy, as we pay them out to people who, most often, but not always, can work, but choose not to. The wealthy in our nation, who on average put in 48-70 hours a week at their respective jobs, meetings, and negotiations, and usually sign you %26quot;working%26quot; peoples paychecks as well, put in their fair share plus some. On the turn around many pay nothing and receive everything. Our economy is our own fault. We give benefits to non-citizens, no other country does this. We put no drop dead dates on welfare and food stamps, no other country gives hand outs like this without a limit. And we allow people to exploit our health care, which I do not complain about, because everyone is entitles to health care, but still we have no checks and balances to secure ourselves that these systems are not being abused. I saw a woman in an Escalade go to the free clinic. Her outfit cost more than my car, but there she was getting free health care. We need to hold people accountable.
First, we are talking about people WITH ANNUAL INCOME over a million. These aren't just millionaires but are the ultra wealthy. Second, these millionaires didn't just disappear or relocate, they are just tax cheats. So the tax plan is not a failed plan because the taxpayers choose to cheat. The answer is the same as it has always been. Close the tax gap. Too many people choose not to pay their taxes which increases the burden on the rest of us.
