The Rich Bailing on Maryland

[guido911]

Seems that Maryland with its "millionaire tax" is losing its target tax base.

A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich.

The study, by the anti-tax group Change Maryland, says that a net 31,000 residents left the state between 2007 and 2010, the tenure of a "millionaire's tax" pushed through by Gov. Martin O'Malley. The tax, which expired in 2010, in imposed a rate of 6.25 percent on incomes of more than $1 million a year.

The Change Maryland study found that the tax cost Maryland $1.7 billion in lost tax revenues. 

http://www.cnbc.com/id/48120446

After running out of states for the rich to run to, out of the country may be next...

[AquaMan]

I hear Russia is nice this time of year and the wealthy aren't bothered with taxes so much. Ireland is so nouveau riche.

[guido911]

Maybe going to Ireland next year on a vacay. We also have talked about Russia and Poland. I'll look for the ex-pats. 

[Ed W]

Maybe going to Ireland next year on a vacay. We also have talked about Russia and Poland. I'll look for the ex-pats. 

I worked in Ireland for some months, but it was long, long ago.  I stayed in Abbeyfeale, a small town a few miles from the west coast.  In the winter and early spring, the weather is most charitably described as 'changeable.'  It would rain, then stop and the sun would come out.  Half an hour later it was raining again, sometimes with gale force winds.  I saw more rainbows in a day than I see in years here.  The salmon and trout fishing is supposed to be world class.  I dunno, but I ate a lot of salmon.

The country has a rich history, and they go to great pains to preserve it.  I was in the midlands, rolling country fringed by mountains, when my friend spotted an unusual tower off in the distance.  Celtic towers are round with a conical top.  'Norman' towers are square.  This one was round but had odd horns sticking out at angles from the top.  We worked our way cross country and found two kids near the base.  One explained that clan such-and-such fought a fierce battle here against clan so-and-so.  Basically, they erected the tower as a monument to two bunches of Irishmen beating the tar out of each other. 

I was in Dublin for just one day.  It's an interesting city full of ancient churches and other buildings.  But I spent most of my free time in the country along the west coast from Listowel south to Tralee and inland through the Gap of Mohan and the Magillicuddy Reeks.  Gotta love the names!  And I could retire and live in Cork quite happily.

In the winter, the food was only so-so.  There was lots of beef, lamb, and seafood, but little chicken or pork.  Vegetables were winter types: potatoes, turnips, parsnips, and carrots.  Fresh vegs had to come from Africa or the Middle East, and they were ridiculously expensive.  I was dying for some pasta, and it was available only in a gourmet shop down in Tralee.

Oh, one of the biggest parties in Europe is the Rose of Tralee festival.  I wasn't there for it, but locals told me the town closed and they had to park outside and ride buses into the city.  They consumed a prodigious amount of alcohol.  I was there for St. Patrick's Day, and I can believe it.  Sullivan's pub in Abbeyfeale went through three times as much beer that weekend.  Driving anywhere was discouraged that day.

The country was a study in contrasts; beautiful countryside marred by burned out cars and trash.  I really hope that's improved.  But it was a poor country too.  A trout stream went behind the house I was staying in, and the town had to prevent erosion by pounding derelict cars into the banks.  It worked and it was undoubtedly cheap, but it was a horrible eyesore.  Still, the wrecks held a lot of minnows for the trout to eat.

[guido911]

I worked in Ireland for some months, but it was long, long ago.  I stayed in Abbeyfeale, a small town a few miles from the west coast.  In the winter and early spring, the weather is most charitably described as 'changeable.'  It would rain, then stop and the sun would come out.  Half an hour later it was raining again, sometimes with gale force winds.  I saw more rainbows in a day than I see in years here.  The salmon and trout fishing is supposed to be world class.  I dunno, but I ate a lot of salmon.

The country has a rich history, and they go to great pains to preserve it.  I was in the midlands, rolling country fringed by mountains, when my friend spotted an unusual tower off in the distance.  Celtic towers are round with a conical top.  'Norman' towers are square.  This one was round but had odd horns sticking out at angles from the top.  We worked our way cross country and found two kids near the base.  One explained that clan such-and-such fought a fierce battle here against clan so-and-so.  Basically, they erected the tower as a monument to two bunches of Irishmen beating the tar out of each other. 

I was in Dublin for just one day.  It's an interesting city full of ancient churches and other buildings.  But I spent most of my free time in the country along the west coast from Listowel south to Tralee and inland through the Gap of Mohan and the Magillicuddy Reeks.  Gotta love the names!  And I could retire and live in Cork quite happily.

In the winter, the food was only so-so.  There was lots of beef, lamb, and seafood, but little chicken or pork.  Vegetables were winter types: potatoes, turnips, parsnips, and carrots.  Fresh vegs had to come from Africa or the Middle East, and they were ridiculously expensive.  I was dying for some pasta, and it was available only in a gourmet shop down in Tralee.

Oh, one of the biggest parties in Europe is the Rose of Tralee festival.  I wasn't there for it, but locals told me the town closed and they had to park outside and ride buses into the city.  They consumed a prodigious amount of alcohol.  I was there for St. Patrick's Day, and I can believe it.  Sullivan's pub in Abbeyfeale went through three times as much beer that weekend.  Driving anywhere was discouraged that day.

The country was a study in contrasts; beautiful countryside marred by burned out cars and trash.  I really hope that's improved.  But it was a poor country too.  A trout stream went behind the house I was staying in, and the town had to prevent erosion by pounding derelict cars into the banks.  It worked and it was undoubtedly cheap, but it was a horrible eyesore.  Still, the wrecks held a lot of minnows for the trout to eat.

Well crap Ed. I don't have to go now. I'll just reread this post and vacay vicariously through you.  Good job...

[cannon_fodder]

Holy crap, Maryland had 31000 people that made $1000000 or more per year?  And they all left!

Oh wait, the story talks about a net population loss of 0.5%... not people that would be effected or people making > $1mil per year.  In other words... it is a tiny fraction with no correlation to the supposed catalyst even stated. Let alone any causation. Unless you are trying to drink whatever they are selling, that story says nothng.

Also, an alarming 0.00000001% of the population renounced their citizenship last year.  No idea why, but leta throw in that number.

Really?

High taxes can drive people away, but this article says nothing.  Whats more:  nyc, portland, seattle... doing fine with high taxes.  Better education, higher wages, better health, higher standard of living.  The debate is not black and white.

[guido911]

Here's the underlying source of my posted article.

http://www.changemaryland.org/wp-content/uploads/2012/07/StateCountyTax.pdf



Here's more analysis:

Annapolis, MD – Maryland accounted for the largest migration exodus of any
state in the region between 2007 and 2010, with a net migration resulting in
nearly 31,000 residents having left the state. Where did most of them go?
Virginia. Virginia is now home to 11,455 former Marylanders, taking $390
million from the tax rolls during this three-year period.

The Old Dominion can claim these former Maryland revenues as part of its
expanding tax base. Following Virginia, Marylanders opted for North Carolina.

"What happens when you raise taxes and fees 24 times?," asked Change
Maryland Chairman Larry Hogan. "You get people voting with their feet
and moving to tax-friendly states." Since 2007, Governor O'Malley has raised
taxes and fees 24 times, taking an additional $2.4 billion out of the economy
each year according to a Change Maryland analysis based on state government
reports.

The analysis, from the non-partisan Tax Foundation, examines IRS tax
return data to determine where individuals are filing.

In the region, Delaware, Virginia and West Virginia increased the
number of tax filers. The District of Columbia and Pennsylvania lost
tax filers, although in these jurisdictions the loss was not nearly as
dramatic as in Maryland. The District lost just over 1,100, while
Pennsylvania lost just over 8,200.

Nationally, Maryland did not fair much better either. Maryland joins
high-taxed, rust belt states including New York, California, Michigan,
Illinois, Ohio and New Jersey among states with largest mass exodus
between 2007 and 2010. Maryland saw the seventh-highest negative net
migration after these states.

In all, Maryland lost $1.7 billion form the tax base due to out
migration during this three year period.

Background:

http://www.changemaryland.org/category/press-releases/
[Emphasis added].

Yeah. No correlation.

[nathanm]

Yeah. No correlation.

I suspect you would find a stronger correlation with a measure of median home price adjusted for the quality of schools. Most people simply can't afford to live in a good school district in many of our more populous states. Thanks to our relatively low land values/housing prices, we don't see much of that dynamic around here.

[cannon_fodder]

100% correct.  Nothing you have posted or linked to has any data showing any correlation between taxing people making more than $1mil and people leaving the state.  Here is your paradigm:

1) maryland taxed people 6% for each dollar earned over $1mil
2) 0.5% of marylands population moved away
3) therefore the tax drives away many millionaires.

You cannot logically reach that conclusion based on the points given.  For all we know 31k homeless people left Baltimore.   Maybe the navy base shut down? Maybe he state laid of 31k teachers and virginia was hiring (fyi: northern virginia is code for "DC Suburbs").

The data presented supports the contention than 31k people left maryland.  It says nothing about why or if those people were rich.

[nathanm]

By the most obvious measure, I don't really see it in the data:

[RecycleMichael]

Here is a link to a guy working on political districts in Maryland last year...

http://www.swingstateproject.com/diary/8528/maryland-population-shifts-by-state-senate-district

[swake]

I don't know where these numbers come from. I read the report and it doesn't cite anything at all, however, according to the US Census Maryland had 5.65 million people in 2007 and 5.83 million in 2011, an increase of 180,000 people over the quoted period.

[heironymouspasparagus]

Three of those who left Maryland were my grandkids.  Leaving jobs that paid a whopping $9.50 an hour.  So, yeah...all the millionaires are leaving in droves!

[Oil Capital]

100% correct.  Nothing you have posted or linked to has any data showing any correlation between taxing people making more than $1mil and people leaving the state.  Here is your paradigm:

1) maryland taxed people 6% for each dollar earned over $1mil
2) 0.5% of marylands population moved away
3) therefore the tax drives away many millionaires.

You cannot logically reach that conclusion based on the points given.  For all we know 31k homeless people left Baltimore.   Maybe the navy base shut down? Maybe he state laid of 31k teachers and virginia was hiring (fyi: northern virginia is code for "DC Suburbs").

The data presented supports the contention than 31k people left maryland.  It says nothing about why or if those people were rich.

The article says that the state lost $1.7 Billion of tax base as a result of these migrations.  That lost tax base divided by the 31,000 migrants tells us that the migrants had an average income of $548,387 per person.  Yes, maybe Maryland laid off 31,000 teachers... ;-)

[Conan71]

The article says that the state lost $1.7 Billion of tax base as a result of these migrations.  That lost tax base divided by the 31,000 migrants tells us that the migrants had an average income of $548,387 per person.  Yes, maybe Maryland laid off 31,000 teachers... ;-)

Either that or 31,000 wealthy people from Maryland all opened Post Office boxes in New Hampshire and called NH their primary residence to avoid income tax in Maryland.