Problem: After running a budget surplus under a republican governor, the democrat governor (and the democrat-dominated state legislature) run the state of Maryland (to which a number of the Gormogons have close ties, if that hasn’t been apparent) into a budget deficit. Compund this with the economic woes and the state leadership starts wondering what to do.
Solution: Tax the rich, they’ve got money, right? So Maryland instituted a special tax on millionaires last year.
Result: Maryland is reporting a 33% drop in the number of millionaires (estimated 3,000 to 2,000). According to the Baltimore Sun (via National Review online), “Taxes collected from those returns [of the millionaires] have declined by roughly $100 million”. NRO continues that the local Chamber of Commerce believes that these people are moving to neighboring states with kinder tax laws.
So as I sit here and read this (with a hat tip – unlike the hat trick that the Caps needed a few of last night, ugh – from the Volgi) I wonder how this translates to the national scene where the Obama administration wants to raise taxes on the rich. Maybe it won’t drive 33% of them out of the country, but I suspect some might relocate. But I do believe that you’ll see more creative tax sheltering and when those get tightened, a general decrying will arise. These are the ranks that invest in America. Sure, they invest elsewhere, but they invest here as well. They have more free capital to spend and buy goods and services from smaller businesses. Name call me and this what you will, but I’ll put up a ‘Puter-like wager against anyone who can prove that wrong (note to you Global Warming advocates out there: the word is PROVE – that means with factual evidence that isn’t tainted or biased, look up the scientific method).
So while I get reamed on my state taxes (waiting for the other shoe to drop from ‘Puter about state taxes), I guess Gov. O’Malley and company will be going back to the drawing board for some more genius ideas. Of course, the drop in revenues could be just attributed to the various Obama cabinet nominees in the state failing to do their patriotic duty and pay their taxes.