First Maryland, now Nueva Jork.
As noted in today’s Wall Street Journal, states are lining up to increase revenue by sticking it to the rich. However, the states ignore ample evidence that capital (and the owners thereof) is mobile, and flows to lower tax jurisdictions. It’s as predictable as water flowing down hill.
Nueva Jork: Paychex founder, Sabres owner and billionaire Tom Golisano relocated to Florida to avoid the “soak the rich” tax increase. Rush Limbaugh has refused to work or live at all in New York to avoid the tax increase. Governor Paterson is living in denial, believing Golisano and Limbaugh will return.
Maryland: One third of Maryland’s millionaires have relocated to lower tax adjoining jurisdictions to avoid Maryland’s new confiscatory tax on the wealthy.
The most interesting part of the entire fiasco is that both Maryland and New York jacked up the cigarette tax with the stated purpose of pricing people out of smoking. Tax the heck out of cigarettes, get less smoking, the theory goes.
How could any sane politician think taxing the rich would have a different result?