Taxation without Millionaire Representation

09-08-2009 • The New Conservative

The state of Maryland has recently received a crash-course in Macroeconomics 101. Amidst a budget deficit last year, the politicians in Annapolis created a new tax bracket for the wealthiest 0.3% of earners. The new millionaire tax bracket raised the top marginal income-tax rate for the state to 6.25%. Democrats praised the new tax, predicting that it would bring an additional $106 million to the state coffers. In true Marxist fashion, Governor Martin O’Malley declared that these taxpayers were "willing and able to pay their fair share." A funny thing happened this past tax season, however. According to the state comptroller’s office, million-dollar income tax returns have decreased from 3,000 to 2,000, down one-third! Naturally, some of this can be attributed to the economic downturn; but much of it is due to millionaires actually leaving the state. In this case, the grass really was greener on the other side. Instead of bringing in an extra $106 million, the st