With States and Localities all looking for money to prop up falling revenues, little is off the table. Politicians though, try to stay away from the "third rail" language of tax increase. Except of course, when it comes to the rich, where it seems to be acceptable.
Maryland is no exception to the "tax the rich" rule. Last year, in an effort to close the budget gap, the Maryland legislature enacted a law which raised the top marginal income tax rate to 6.25% for those earning over a million dollars a year.
Pretty simple, extra money for the State coffers, and they won't mind because after all, they're rich and can afford a few bucks.
So far, as it turns out, rich people do mind. Preliminary statistics from the income tax returns are showing that more than a few of the "Millionaire Marylanders" are missing. They may show up again but right now about a third of them seem to have disappeared.
In April 2008, about 3000 million dollar salary Marylanders filed taxes on April 15th. In April 2009, that figure dropped to about 2000, oops! Maybe they're procrastinating this year and filing late :)
Did they all leave Maryland? Probably not, but I'm sure some decided to look for a more "tax friendly" place to live. Making a million bucks a year, they can surely afford it.
I guess the State can do one of two things since they still need the extra money that the "rich" seem to be so unwilling to give up. Squeeze more out of the ones who are still here, or, drop the salary figure of who is considered "rich."
Uh oh, I think we might be in trouble Marylanders, or as Mike Saunders says, "BOHICA."
Frequently, the decisions we make, have unintended consequences.
Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
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Rich Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
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Richard - I see your state legislature lowering the income threshold to include every tax payer. That way it is "fair" for everyone and everyone gets to participate. Like you said, bohica!!!
I am against class warfare as much as I detest trickle down. People should be treated equally and if they do well bless them and let them enjoy
I wish I was a Marylander with that tax bill. . there is also another side that will account for the drop of taxpayers. .it is incomes has really drop, look at Wall St and see all those business that once were thriving are just making it. I know personally of at least 5 people that more likely made over a million dollars in 2004 and 2005 that are not making that kind of money anymore. . a couple of them are Realtors.
I have always wondered where it began that the more one makes the more government has the right to take. Just by making more the ones who make more are paying more... 5% of something is still 5%. Why on earth do they need to make it 6%? It soon becomes, why bother to make more? Where is the incentive? Maybe it should be that those who pay taxes on $1,000,000 would get a rebate instead of addition taxes? But that ain't gonna happen under any administration and especially not the current one.
Rich...
At some point, the mathematical reality of the fact that there are not enough rich people to pay the bills will have to be acknowledged.
Rich,
I am so tired of Maryland's system! We need some new faces - preferably Republican - fat chance in Md.
How many times can one go to the cookie jar? Wealthy people pay their fair share of taxes. However, most of the super wealthy are leaving the US because of taxes. Beware
Rich,
Sometimes the solution is not always the best idea. We fail to look at all of the ramifications of what we think to be a GREAT idea. Another good solution would be to tighten the belt and cut spending. But I am sure they have already considered that idea.
Dan, It's coming. Their appetite for new revenue is unsatible.
Charlie, I'm with you on that.
Fernando, That might be true to some extent but the numbers still don't add up. There have been other reports of Maryland millionaires moving to Virginia and Delaware.
Rich, I think that it is time for the Feds and the States to rethink the whole entitlement program. You are right, there just ain't enough dough to go around...
Gail, Politicians know that there isn't a lot of sympathy for rich people and they take advantage of that fact.
Richard, Their capacity for mischief if unlimited. I don't think they give much thought to the science of mathematics when they're making these proposals.
Linda, You couldn't be more right. I'm tired of seeing the same faces year after year...and the same problems. There is a linkage.
Hi Rich:
It seems that "fairness" is rarely the part of the tax equation in any state!
Lots of tax extensions throughout the country, I'm sure!
Richard - history has shown that if a government continues to tax the rich abusively, the rich disappear, or at least the incomes of the rich disappear. They may leave, they may move their assets off shore, or they just quit working.
Hi Richard
There is an old saying "tax them and they will leave."
New York City and Californiawill be experiencing the same as Maryland.
Sad.
Good luck and success.
Lou Ludwig
Well our wonderful Democratic Governor here in Michigan thought raisng taxes was the right solution a couple of years ago so now our unemployment rate is 12.9% and rising...and we are still running a deficit that they can't figure out how to solve. Good luck.
Rich,
I'm continually reminded of Ayn Rand's book Atlas Shrugged written in 1957, highly recommended for conservative, entraprenurial types. It seems the same problems plaguing us then are still with us. Somehow as a country we manage to adapt, malleable folks that we are. Problem is - I feel payback is just around the corner, it is just a matter of time ~ isn't it?
Richard those are some interesting factoids. I just saw an article showing the mass exoduss of the rich from New York because of over taxation...
Interesting, not a problem I will face anytime soon...or ever... but that's ok, because I am not really excited about having to leave Colorado, if they ever make it too difficult to live the rich life here! =o)