Millionaires Moving Out Of Maryland To Escape Confiscatory Taxes

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Perhaps the Governor of Maryland can learn an important lesson from the Governor of New York David Paterson or better yet NYC mayor Michael Bloomberg when it comes to constantly hammering the wealthy with confiscatory and punishing taxing schemes. Eventually these folks get fed up and move out of state often taking all of their business interests with them.

Not only does the state lose the amount it would have “raised” had the despicable and evil wealthy stayed put and took it in the keyster at the higher tax rate but now they lose everything when the people who generate millions of jobs and middle class incomes pack their bags and flee to places like Florida and Texas, states that do not impose personal income taxes on residents. As a matter of fact Texas has no corporate tax yet is one of the most fiscally sound states in the U.S with an economy that is relatively booming considering what a financial mess the rest of the country is in.

More about Maryland’s millionaire bailout from the Baltimore Sun.com,

One of Maryland’s budget-balancing tactics – asking millionaires to pay more money to the state – appears to be backfiring as the number of the highest-earning taxpayers dwindles with the flagging economy.

A year ago, Maryland became one of the first states in the nation to create a higher tax bracket for millionaires as part of a broader package of maneuvers intended to help balance the state’s finances and make the tax code more progressive.

But as the state comptroller’s office sifts through this year’s returns, it is finding that the number of Marylanders with more than $1 million in taxable income who filed by the end of April has fallen by one-third, to about 2,000. Taxes collected from those returns as of last month have declined by roughly $100 million.

Many taxpayers in that bracket likely filed an extension and won’t complete their returns until October, but a trend is emerging that indicates a “substantial decline” in the number of residents and small businesses with that kind of income, Comptroller Peter Franchot wrote in a letter to Gov. Martin O’Malley and legislative leaders.

Another more debatable explanation would be that millionaires have simply fled the Free State. While some say they have heard anecdotal evidence of the wealthy packing it up, officials say there’s no proof yet of such a development.

Ah yes denial. That would be the first stage of the grieving process with acceptance being the last.

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One Response to Millionaires Moving Out Of Maryland To Escape Confiscatory Taxes

  1. Christine says:

    Oh that’s right we are supposed to let them keep all their millions while the “what used to be middle class” pay all the taxes… Go Maryland…

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