Wealthy Marylanders Vote With Their Feet

February 25, 2010 by Cato  
Filed under Fiscal Policy, Maryland, Maryland Politics, Taxes

Liberals never learn.  They cling to the discredited belief that all you need to do to raise government revenue is raise tax rates.  Wealthy Marylanders are showing Gov. Martin O’Malley that they have options too.  They can move to a more tax friendly state.

In 2007 O’Malley and his leftist pals in the legislature instituted the so-called “millionaires surcharge”.  Montgomery County is learning that if you raise taxes they will leave:

County officials estimate next year’s budget deficit will be more than $761 million. Much of the shortfall is tied to a few residents who have either lost money in the economy, died or fled Maryland’s new millionaire tax.

County records show Montgomery lost $4.6 billion in taxable income between tax years 2007 and 2008. The number of income tax returns above $1 million declined by 27 percent during that time.

Despite this “shocking revelation” of basic economics, those stalwarts of fiscal sanity – the Democrat majority of the Maryland General Assembly – are considering extending the “surcharge”, which is set to expire next year.  Perhaps O’Malley should call newly elected New Jersey Gov. Chris Christie and ask him how many high earners abandoned the Garden State under the tax and spend policies of Christie’s predecessor – Gov. John Corzine.

Go ahead Marty – dance while Maryland burns.