Chasing Away the Goose

The Wall Street Journal via Glenn Reynolds:

Maryland couldn't balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%.

Some cities had even higher rates.

Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."

Grin and bear it? Nope. They "sighed and left."

In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.

Thank God for freedom of movement.

Comments

[Cafe Alpha]

which proves that if you want to raise taxes on people as slippery as the wealthy you have to make it federal.

This isn't a the moral issue you make it out to be, you know. There is nothing that makes no tax on the rich more moral than 6%, or 10%.

"Thank God" why?

Taxes on the wealthy have gone up and down over the years. I think during the 50s we had higher taxes on the wealthy than now.

Americans have an idea at odds with many successful countries, that the government should never supply services.. But it's simply wrong that there are no cases where the universality of the government doesn't make great things possible avoiding some versions of "the tragedy of the commons". The bitter denial of this principle and of the good that could be done is the great flaw of American conservatism.

[Snake Oil Baron]

Odd how taking wealth from those who create it makes those who create wealth less willing to do so. I mean, why would people not want to expend the effort, take the risk and consume their own resources just for the pleasure of having it taken away from them? People must be nuts.

And why would people who are given wealth which others create, not be willing to create their own wealth too?

And while we are at it, what is the deal with people giving to charities when there are government programs to take care of these things? And why do rich people give so much more of their wealth, as a percent, to charities than the middle class?

[Snake Oil Baron]

Nice little video (via a REDSTATE comment)

[Snake Oil Baron]

BTW, Who is John Galt? Does he comment here or something?