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Well, there’s a surprise

A lesson for Gordon here, or any other government which spends more than they expropriate – Can’t balance your budget? Easy solution, do as Maryland did and find someone rich to fleece.

The WSJ picks up the story:

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.

Gosh, who woulda thunk it. Tax people, and they object.

Cause and effect people, cause and effect.

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 like Florida, Delaware, South Carolina and Virginia. So it’s easy for them to change their residency."

Bloody tax havens. Lets ban em.

2 Comments

  1. Chalcedon says:

    We know that we have to pay taxes, but what we all object to is having to pay unfair taxes. I mean VAT is outrageous at 17.5% which it will return to and 50% on those earning very high salaries is also a bad thing, especially when income tax is far too high anyway. This guy in Maryland will not obtain any extra revenue with his little scheme.

  2. captainff says:

    Whenever I read or hear these stories of people trying to justify raising extra taxes on the well paid the justification “willing and able to pay their fair share.” nearly always crops up.

    As my income has risen, so has the amount of tax that is deducted, oddly enough at the rate set by the govt. I already pay more tax than someone who earns half the income that I do so I’m confuzzled as to why my “fair share” should account for a higher percentage of my income the higher my income becomes.

    No doubt someone will enlighten me.

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