Effects of taxing the top wage earners

Discussion in 'Economy' started by jreeves, May 18, 2009.

  1. jreeves
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    jreeves Senior Member

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    One of Maryland's budget-balancing tactics - asking millionaires to pay more money to the state - appears to be backfiring as the number of the highest-earning taxpayers dwindles with the flagging economy.

    A year ago, Maryland became one of the first states in the nation to create a higher tax bracket for millionaires as part of a broader package of maneuvers intended to help balance the state's finances and make the tax code more progressive.

    But as the state comptroller's office sifts through this year's returns, it is finding that the number of Marylanders with more than $1 million in taxable income who filed by the end of April has fallen by one-third, to about 2,000. Taxes collected from those returns as of last month have declined by roughly $100 million.

    Many taxpayers in that bracket likely filed an extension and won't complete their returns until October, but a trend is emerging that indicates a "substantial decline" in the number of residents and small businesses with that kind of income, Comptroller Peter Franchot wrote in a letter to Gov. Martin O'Malley and legislative leaders.

    and more at Maryland plan to tax millionaires backfires -- baltimoresun.com


    When are liberals going to learn, you can't pay for everything by taxing the top wage earners? You will inevitably dry up revenue if you tax too heavily.
     
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  2. Skull Pilot
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    Skull Pilot Platinum Member

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    Soak the Rich, Lose the Rich - WSJ.com

     
  3. editec
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    editec Mr. Forgot-it-All

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    I know at least two formerly uber-liberals scions who, when it was apparently that their parents were on their way out, moved to New Hampshire to avoid income taxes.

    Now, ironically, they both bitch about how high the real estate taxes in New Hamspire are.

    My heart so totally bleeds for them.
     
  4. Skull Pilot
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    Skull Pilot Platinum Member

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    In reality the higher property taxes in NH are still, in the aggregate, less than the total tax burden of many other states.

    the problem is that you actually see what your real estate taxes are where income, sales and other taxes are not felt as much.
     
  5. Diuretic
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    Diuretic Permanently confused

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    The real reason? Faced with having to pay taxes the rich are committing hari-kiri.
     
  6. GHook93
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    GHook93 Aristotle

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    Not just wage earns look at Corporations also! Taxing Corporations reckless like the US does drives them to places where they don't recklessly tax them and we hear lefties bitch about them leaving and then they simutaneously blame it on the Republicans!
     
  7. Iriemon
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    Iriemon VIP Member

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    It's a miracle the nation survived the great exodus of the 1950s and 1960s, when top tax rates up to 91% caused all the rich folks to leave in droves.
     
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    If Obama says to do it, let's do it! Right now he is on a roll. He can't do anything wrong. So, if he says tax all the rich until they qualify for food stamps let's ger er done. Look out rich people, your arses are grasses.
     
  9. Skull Pilot
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    Skull Pilot Platinum Member

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    There were a lot less people making 200K a year in earned income in the 50s and 60s than there are today.

    and consider the fact that 200K in 1960 is equal to about 1.4 million today and tell me that raising taxes to 90% on people making more than 200K makes sense.
     
  10. Annie
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    Annie Diamond Member

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    I don't think the point was to make anyone's 'heart bleed for them,' rather they have options and chose to exercise them. Now I wouldn't be surprised to find the Obama solution would be to remove state taxes, have the feds increase across the board and 'return' some to the states-making for no 'tax free' states. The rich will still have options to relocate elsewhere, not the rest of us though.

    The idea of punitive taxes on certain groups just doesn't work. The idea that the government actually control its spending still hasn't occurred, but better had, in a hurry.
     

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