Interstate taxing

Say you get a good job in the environs of our nation’s capital. (The region has some of the country’s lowest unemployment rates, with jobs in government, high-tech, and the military-industrial complex.)  Your choices of where to live are the District of Columbia, Maryland, or Virginia.

Maryland has just chosen to raise its income tax rates to match those of D.C., so they will be tied for fourth highest in the nation.  Virginia’s taxes, on the other hand, are not too far from reasonable.  Where would you choose to live?  What do you think will happen in the long run to the economy of these three regions?

From the Washington Post:

More than 300,000 Maryland residents will pay higher income taxes under a package given final approval by the legislature Wednesday.

The tax increase affects single-filers reporting income in excess of $100,000 and joint-filers reporting more than $150,000 in Maryland, the state with the nation’s highest per-capita income.

Democratic lawmakers closed ranks behind Gov. Martin O’Malley (D), who argued that his administration needed more money to continue record spending on education.

O’Malley’s tax increases — combined with a move the legislature supported to shift teacher pension costs to counties — will close half of a $1 billion gap that had been forecast for the rest of the decade.

The legislation — passed by the Senate on Tuesday and the House on Wednesday — will also widen the income tax divide between Maryland and Virginia. Maryland’s new top state-local tax bracket will tie the District’s for fourth-highest in the nation, at 8.95 percent. Across the Potomac, the top rate in Virginia is 5.75 percent.

via Md. passes income tax hike on six-figure earners – The Washington Post.

About Gene Veith

Professor of Literature at Patrick Henry College, the Director of the Cranach Institute at Concordia Theological Seminary, a columnist for World Magazine and TableTalk, and the author of 18 books on different facets of Christianity & Culture.

  • SKPeterson

    A corollary effect may also result as high income earners decamp from Maryland to Virginia: property values in Virginia will rise increasing the property tax burden for home owners but increased income to the state, while Maryland’s property values are likely to suffer a relative decline and resulting loss in property tax revenue. At some point, people will have to factor in the losses from higher property tax in Virginia against the higher income tax rates in Maryland and look at the total tax burden. If Maryland has both high property taxes and high income taxes it will be a net loser: people will leave reducing the income tax take, while property values will begin to decline as more people leave than stay resulting in a larger supply of homes relative to population. A kicker is that if property taxes remain high, people will increasingly seek to rent in condos and apartments.

    The upshot is that Maryland is likely to suffer a long-term decline in revenue even with the higher rates resulting in an even larger deficit than projected.

  • SKPeterson

    A corollary effect may also result as high income earners decamp from Maryland to Virginia: property values in Virginia will rise increasing the property tax burden for home owners but increased income to the state, while Maryland’s property values are likely to suffer a relative decline and resulting loss in property tax revenue. At some point, people will have to factor in the losses from higher property tax in Virginia against the higher income tax rates in Maryland and look at the total tax burden. If Maryland has both high property taxes and high income taxes it will be a net loser: people will leave reducing the income tax take, while property values will begin to decline as more people leave than stay resulting in a larger supply of homes relative to population. A kicker is that if property taxes remain high, people will increasingly seek to rent in condos and apartments.

    The upshot is that Maryland is likely to suffer a long-term decline in revenue even with the higher rates resulting in an even larger deficit than projected.

  • Cincinnatus

    Apparently, Maryland didn’t learn anything from its ill-fated “millionaire’s tax” a couple of years ago.

  • Cincinnatus

    Apparently, Maryland didn’t learn anything from its ill-fated “millionaire’s tax” a couple of years ago.

  • Kirk

    If income tax were the only consideration, then VA would be the obvious answer, but there are other things to consider:

    Property taxes in MD are higher, but property is generally less valuable, so you typically end up paying less in taxes then you would in VA or DC.

    VA charges a yearly personal property tax on vehicles, which is quite steep. I’ve got a cheap Hyundai and was paying around $200/year for the pleasure of having VA tags on that thing. MD and DC don’t have that tax.

    VA municipalities can charge a special fee for living in their areas. Alexandria charges around $180/year, for example.

    VA has a 5% sales tax, 2.5% grocery tax, 6.5% food and beverage tax and an 11.5% alcohol tax. MD’s is 6% sales tax, 0% grocery tax, 6% food and beverage tax and a 9% alcohol tax. So MD’s sales taxes are slightly cheaper.

    Plus then there’s cost of living (cheaper in MD), quality of life (probably better in VA) and convenience to work (depends). These are what tend to factor in to people’s decisions about where to live, not taxes.

    Of course, both MD and VA are suburban hellscapes, so the prospect of living in either isn’t particularly appealing.

  • Kirk

    If income tax were the only consideration, then VA would be the obvious answer, but there are other things to consider:

    Property taxes in MD are higher, but property is generally less valuable, so you typically end up paying less in taxes then you would in VA or DC.

    VA charges a yearly personal property tax on vehicles, which is quite steep. I’ve got a cheap Hyundai and was paying around $200/year for the pleasure of having VA tags on that thing. MD and DC don’t have that tax.

    VA municipalities can charge a special fee for living in their areas. Alexandria charges around $180/year, for example.

    VA has a 5% sales tax, 2.5% grocery tax, 6.5% food and beverage tax and an 11.5% alcohol tax. MD’s is 6% sales tax, 0% grocery tax, 6% food and beverage tax and a 9% alcohol tax. So MD’s sales taxes are slightly cheaper.

    Plus then there’s cost of living (cheaper in MD), quality of life (probably better in VA) and convenience to work (depends). These are what tend to factor in to people’s decisions about where to live, not taxes.

    Of course, both MD and VA are suburban hellscapes, so the prospect of living in either isn’t particularly appealing.

  • WebMonk

    SK, you touch on a good point – total tax burden. But, having a significantly lower income tax than its neighbors is not the only factor in local taxes. I’m not so sure Maryland is going to see a decline, SK.

    You said “If Maryland has both high property taxes and high income taxes it will be a net loser….” If that “If” were true, then you might be right, but the “If” isn’t true. Compared to most of NOVA, Maryland’s property taxes around the DC area are significantly lower.

    You can Google for the exhaustive lists, but here are most for the DC area in Maryland: Montgomery County is .713, Prince George .96, Anne Arundel .91, Charles 1.07, and Calvert .89, Frederick .936, St. Mary .857.

    DC area in Virginia: Fairfax 1.05, Loudoun 1.245, Prince William 1.212, Arlington .866.

    The difference is significant, and it becomes even more significant when the city taxes are taken into account. Most of the city taxes in MD run between .543 and .936, whereas most of the city taxes in VA run between .88 and 1.35.

    For a $300,000 property, that makes a difference of around $3000 per year in property taxes (average). Virginia is taking the low income tax method (comparatively) where most of competing locations in Maryland seem to be taking the low property tax route.

    If property values in VA continue to rise more quickly than those in MD, the difference in property taxes will begin to have more impact, pushing some of the population out of VA and into MD because of property tax issues (as well as general property prices).

    When the ability to swap goods (living locations around DC) is relatively easy, the differences in population will only go so far. As the taxes are relatively equal in total, population density (with accompanying tax income for state/counties and infrastructure costs) will vary more on the other factors: infrastructure, commute times, cost of living, quality of living, etc.

    Total tax burdens will have to becomes dramatically more different before the growth of the respective states is driven one way or the other just by taxes.

    I agree that Maryland is going to fall behind Virginia, at least in the DC area, but I think it will have a lot more to do with how they each treat business and residential development more than the differences in total tax burdens which I view as mostly comparable.

  • WebMonk

    SK, you touch on a good point – total tax burden. But, having a significantly lower income tax than its neighbors is not the only factor in local taxes. I’m not so sure Maryland is going to see a decline, SK.

    You said “If Maryland has both high property taxes and high income taxes it will be a net loser….” If that “If” were true, then you might be right, but the “If” isn’t true. Compared to most of NOVA, Maryland’s property taxes around the DC area are significantly lower.

    You can Google for the exhaustive lists, but here are most for the DC area in Maryland: Montgomery County is .713, Prince George .96, Anne Arundel .91, Charles 1.07, and Calvert .89, Frederick .936, St. Mary .857.

    DC area in Virginia: Fairfax 1.05, Loudoun 1.245, Prince William 1.212, Arlington .866.

    The difference is significant, and it becomes even more significant when the city taxes are taken into account. Most of the city taxes in MD run between .543 and .936, whereas most of the city taxes in VA run between .88 and 1.35.

    For a $300,000 property, that makes a difference of around $3000 per year in property taxes (average). Virginia is taking the low income tax method (comparatively) where most of competing locations in Maryland seem to be taking the low property tax route.

    If property values in VA continue to rise more quickly than those in MD, the difference in property taxes will begin to have more impact, pushing some of the population out of VA and into MD because of property tax issues (as well as general property prices).

    When the ability to swap goods (living locations around DC) is relatively easy, the differences in population will only go so far. As the taxes are relatively equal in total, population density (with accompanying tax income for state/counties and infrastructure costs) will vary more on the other factors: infrastructure, commute times, cost of living, quality of living, etc.

    Total tax burdens will have to becomes dramatically more different before the growth of the respective states is driven one way or the other just by taxes.

    I agree that Maryland is going to fall behind Virginia, at least in the DC area, but I think it will have a lot more to do with how they each treat business and residential development more than the differences in total tax burdens which I view as mostly comparable.

  • Cincinnatus

    Kirk: A clarification is in order. You’re talking about NoVa. Southern Virginia (=real Virginia) is much cheaper.

    Not that that’s relevant. But Maryland in general is more expensive than Virginia, I’ve found. The sales taxes you mention more or less even out, but Maryland is saddled with lots of extra fees, regulations, etc., that, in general, make Virginia a more pleasant place to reside. Unfortunately, because all the Marylanders are fleeing South and doing their damndest to ruin whatever is left to treasure in NoVa.

  • Cincinnatus

    Kirk: A clarification is in order. You’re talking about NoVa. Southern Virginia (=real Virginia) is much cheaper.

    Not that that’s relevant. But Maryland in general is more expensive than Virginia, I’ve found. The sales taxes you mention more or less even out, but Maryland is saddled with lots of extra fees, regulations, etc., that, in general, make Virginia a more pleasant place to reside. Unfortunately, because all the Marylanders are fleeing South and doing their damndest to ruin whatever is left to treasure in NoVa.

  • WebMonk

    :-P That will teach me to take too long in writing a post.

    Kirk, I agree with most of your post, but we apparently disagree one which state has the higher real estate property taxes.
    MD: http://www.dat.state.md.us/sdatweb/taxrate.html
    VA: I didn’t find as concise a listing, but here is a partial, and I did a variety of spot checks on individual counties and cities.

    I think DC-area VA real estate taxes are generally higher than the DC-area MD taxes.

    I agree that VA has a lot of other taxes which are higher or plain don’t exist in MD.

  • WebMonk

    :-P That will teach me to take too long in writing a post.

    Kirk, I agree with most of your post, but we apparently disagree one which state has the higher real estate property taxes.
    MD: http://www.dat.state.md.us/sdatweb/taxrate.html
    VA: I didn’t find as concise a listing, but here is a partial, and I did a variety of spot checks on individual counties and cities.

    I think DC-area VA real estate taxes are generally higher than the DC-area MD taxes.

    I agree that VA has a lot of other taxes which are higher or plain don’t exist in MD.

  • WebMonk

    Cin, the “real Virginia”, while cheaper, doesn’t have much in the way of mass job opportunities. Cheap living, but not so hot for masses of families needing jobs.

  • WebMonk

    Cin, the “real Virginia”, while cheaper, doesn’t have much in the way of mass job opportunities. Cheap living, but not so hot for masses of families needing jobs.

  • Kirk

    It is beautiful down there. I love all of VA that’s not in W. Loudoun, Ffx, Arlington and Prince William.

  • Kirk

    It is beautiful down there. I love all of VA that’s not in W. Loudoun, Ffx, Arlington and Prince William.

  • SKPeterson

    I avoid the whole mess by living in Tennessee where we don’t have an income tax, but we still ahve a vibe very similar to SoVA. Sales taxes are high – about 9.25% on average, but property prices and tax rates are pretty reasonable. Unfortunately, we don’t have any oil or gas, or even a lot of coal; under the three inches of topsoil in my lawn is about 12 feet of unfired brick interspersed with layers of chert and chalk. But we do have mountains and trees and something the pitiful saps in Georgia lack – access to ample supplies of fresh water.

  • SKPeterson

    I avoid the whole mess by living in Tennessee where we don’t have an income tax, but we still ahve a vibe very similar to SoVA. Sales taxes are high – about 9.25% on average, but property prices and tax rates are pretty reasonable. Unfortunately, we don’t have any oil or gas, or even a lot of coal; under the three inches of topsoil in my lawn is about 12 feet of unfired brick interspersed with layers of chert and chalk. But we do have mountains and trees and something the pitiful saps in Georgia lack – access to ample supplies of fresh water.

  • Kirk

    and whiskey!

  • Kirk

    and whiskey!

  • SKPeterson

    We have both kinds. The legal stuff and its cousin.

  • SKPeterson

    We have both kinds. The legal stuff and its cousin.

  • DonS

    The fact that a government has to raise its tax rates, particularly during recessionary times, is a red flag that it is not properly managing its funds. In this case, no doubt, Gov. O’Malley’s “record spending” on education is due to ridiculous union contracts resulting in excessive pension and medical costs — the money is not getting to the classrooms or improving the qualify of education. But, because Democratic governments cannot bit the union hands that feed them, this happens.

    These kinds of tax increases are cumulative and symbolic. No single 1% increase in rates is going to drive the economics to force a high earner to consider a move. But, if I’m a Maryland high-earner, I am looking down the road and I’m seeing more of the same. The VA government is generally pro-growth and pro-business, while the MD government is pro-government, anti-business, and engaging in class warfare. It will most certainly be demanding more tax increases on high earners in the future.

    At some point, you reach a tipping point and you move.

  • DonS

    The fact that a government has to raise its tax rates, particularly during recessionary times, is a red flag that it is not properly managing its funds. In this case, no doubt, Gov. O’Malley’s “record spending” on education is due to ridiculous union contracts resulting in excessive pension and medical costs — the money is not getting to the classrooms or improving the qualify of education. But, because Democratic governments cannot bit the union hands that feed them, this happens.

    These kinds of tax increases are cumulative and symbolic. No single 1% increase in rates is going to drive the economics to force a high earner to consider a move. But, if I’m a Maryland high-earner, I am looking down the road and I’m seeing more of the same. The VA government is generally pro-growth and pro-business, while the MD government is pro-government, anti-business, and engaging in class warfare. It will most certainly be demanding more tax increases on high earners in the future.

    At some point, you reach a tipping point and you move.

  • Cincinnatus

    WebMonk: My shoutout to “real Virginia” (where I’m from) was a bit of chauvinism–though the quality of life there is superior in many respects to the suburban wasteland of NoVa.

    …if you can look past the poverty and thick accents.

  • Cincinnatus

    WebMonk: My shoutout to “real Virginia” (where I’m from) was a bit of chauvinism–though the quality of life there is superior in many respects to the suburban wasteland of NoVa.

    …if you can look past the poverty and thick accents.

  • http://www.toddstadler.com/ tODD

    After summarizing only some basic tax differences, Veith asks: “Where would you choose to live?”

    Does anyone really think like that, making decisions based largely on tax rates? If so, they get what they deserve in terms of quality of life (among other things).

    I live in Portland, Oregon — in a state with no sales tax, but it does have an income tax (I think I’m in something like the 8.5% bracket). Across the Columbia River is Vancouver (not BC), Washington (not DC), which has no income tax, but does have a combined local sales tax of 8.4%.

    But none of that factored into my decision of where to live. Based on regional statistics, I’m not alone. Portland has continued to grow quite a bit over the past decade. As has Vancouver, WA.

  • http://www.toddstadler.com/ tODD

    After summarizing only some basic tax differences, Veith asks: “Where would you choose to live?”

    Does anyone really think like that, making decisions based largely on tax rates? If so, they get what they deserve in terms of quality of life (among other things).

    I live in Portland, Oregon — in a state with no sales tax, but it does have an income tax (I think I’m in something like the 8.5% bracket). Across the Columbia River is Vancouver (not BC), Washington (not DC), which has no income tax, but does have a combined local sales tax of 8.4%.

    But none of that factored into my decision of where to live. Based on regional statistics, I’m not alone. Portland has continued to grow quite a bit over the past decade. As has Vancouver, WA.

  • Cincinnatus

    tODD: In certain situations, people do think like that. For example, I was recently looking at a job in Greenfield, Massachusetts, which is within minutes of both New Hampshire and Vermont. Were I to accept said job, I would almost certainly choose to live in New Hampshire solely based on New Hampshire’s favorable tax rates. Similarly, I can’t see myself ever taking a job in my field in New Jersey; property taxes are simply too high there, such that home ownership probably wouldn’t be feasible for me.

    And then there are the millionaire’s, the wealthy who are, for better or worse, rootless and mobile, possessed of the means to live wherever is most amenable to their investments. That’s why I mentioned Maryland’s attempt at a millionaire’s tax: after it was instituted, millionaire’s literally fled the state for more favorable climes. Maryland was thus forced to abolish the tax in 2010. And one need hardly mention the fact that businesses absolutely consider tax rates when relocating. Tax policies have real consequences at a certain point.

  • Cincinnatus

    tODD: In certain situations, people do think like that. For example, I was recently looking at a job in Greenfield, Massachusetts, which is within minutes of both New Hampshire and Vermont. Were I to accept said job, I would almost certainly choose to live in New Hampshire solely based on New Hampshire’s favorable tax rates. Similarly, I can’t see myself ever taking a job in my field in New Jersey; property taxes are simply too high there, such that home ownership probably wouldn’t be feasible for me.

    And then there are the millionaire’s, the wealthy who are, for better or worse, rootless and mobile, possessed of the means to live wherever is most amenable to their investments. That’s why I mentioned Maryland’s attempt at a millionaire’s tax: after it was instituted, millionaire’s literally fled the state for more favorable climes. Maryland was thus forced to abolish the tax in 2010. And one need hardly mention the fact that businesses absolutely consider tax rates when relocating. Tax policies have real consequences at a certain point.

  • Cincinnatus

    millionaires***

  • Cincinnatus

    millionaires***

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    Are they trying to turn the whole state into Baltimore?

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    Are they trying to turn the whole state into Baltimore?

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    As Greece has noted, it doesn’t really matter what the statutory tax rates are if you can’t actually collect those taxes.

    High property taxes depress property values. High income taxes come with loopholes that certain constituencies lobby to fall into. Income taxes are also dodged more easily than property taxes. If one were wealthy, he would prefer high income taxes because it taxes income not wealth. If one had a high income, he would prefer low income tax because he has more income than wealth. If he had neither high income nor wealth, he would prefer both to be high because he has little of either to tax and would pay little anyway, but he would enjoy all the good roads, services etc., paid by those who do have high income and wealth.

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    As Greece has noted, it doesn’t really matter what the statutory tax rates are if you can’t actually collect those taxes.

    High property taxes depress property values. High income taxes come with loopholes that certain constituencies lobby to fall into. Income taxes are also dodged more easily than property taxes. If one were wealthy, he would prefer high income taxes because it taxes income not wealth. If one had a high income, he would prefer low income tax because he has more income than wealth. If he had neither high income nor wealth, he would prefer both to be high because he has little of either to tax and would pay little anyway, but he would enjoy all the good roads, services etc., paid by those who do have high income and wealth.

  • http://steadfastlutherans.org/ SAL

    I grew up in the Eastern Shore of Maryland which is quite unlike the rest of the state (being composed primarily of the descendents of English colonists, Pennsylvania Germans and the descendents of freedmen).

    Wedding this rural area, which is more like Delaware or Virginia, to Maryland never made sense. The taxes Maryland institutes are probably fine for high income areas like suburban Baltimore and DC. They’re a serious impediment to life in a poor rural region like the Eastern Shore.

    My brother lived in Delaware as opposed to the Eastern Shore of Maryland because incomes where the same in both places but Maryland gang-raped you with taxes while Delaware had no sales or income taxes (at that time).

  • http://steadfastlutherans.org/ SAL

    I grew up in the Eastern Shore of Maryland which is quite unlike the rest of the state (being composed primarily of the descendents of English colonists, Pennsylvania Germans and the descendents of freedmen).

    Wedding this rural area, which is more like Delaware or Virginia, to Maryland never made sense. The taxes Maryland institutes are probably fine for high income areas like suburban Baltimore and DC. They’re a serious impediment to life in a poor rural region like the Eastern Shore.

    My brother lived in Delaware as opposed to the Eastern Shore of Maryland because incomes where the same in both places but Maryland gang-raped you with taxes while Delaware had no sales or income taxes (at that time).

  • DonS

    tODD @ 14, Cincinnatus @ 15: The thing is, when you and I decide where to live, we are all in. We have one residence, and one lifestyle, and so every factor comes into play in making our decision. For the wealthy, however, they typically have multiple residences in multiple states, and it is quite easy for them to tweak things sufficiently to change their state of residence. If one particular state (*cough* California *cough* Maryland *cough*) is continually demonizing them, accusing them of fleecing the 99% and vowing to get even with them through the tax code, and at the same time doing absolutely nothing to address the problems that are really causing the budgetary imbalance, so that you know that future tax increases are inevitable, they will take the steps necessary to change their state of residence. They will still keep their former home, and still be there some parts of the year, but the state, through its greed, has lost a taxpayer entirely.

  • DonS

    tODD @ 14, Cincinnatus @ 15: The thing is, when you and I decide where to live, we are all in. We have one residence, and one lifestyle, and so every factor comes into play in making our decision. For the wealthy, however, they typically have multiple residences in multiple states, and it is quite easy for them to tweak things sufficiently to change their state of residence. If one particular state (*cough* California *cough* Maryland *cough*) is continually demonizing them, accusing them of fleecing the 99% and vowing to get even with them through the tax code, and at the same time doing absolutely nothing to address the problems that are really causing the budgetary imbalance, so that you know that future tax increases are inevitable, they will take the steps necessary to change their state of residence. They will still keep their former home, and still be there some parts of the year, but the state, through its greed, has lost a taxpayer entirely.

  • SKPeterson

    Well, I can say that total tax burden did play a huge role in weeding out prospects for employment. I didn’t have definite areas I would go to, but I did have definite areas I would not go to. I wrote off going to any of the universities or national laboratories in California, for example, even though we were living in the West and the lion’s share of all the colleges and universities are in the (not so) Golden State. I was also very leery of anything within the confines of the Northeast Corridor. If a position had opened up at Dartmouth of the University of New Hampshire I would have been all over them; even Vermont or Middlebury – even though I could probably count on not getting tenure due to my radically unLeft politics. So, the Middle South, Southeast and Texas were the regions that I most seriously concentrated on due to a combination of factors: low cost of living including low tax burdens and one that was close to family. I can say though, that if a position opened up at Portland State, and I had been offered, I seriously would have considered it, but I would have moved to Vancouver.

  • SKPeterson

    Well, I can say that total tax burden did play a huge role in weeding out prospects for employment. I didn’t have definite areas I would go to, but I did have definite areas I would not go to. I wrote off going to any of the universities or national laboratories in California, for example, even though we were living in the West and the lion’s share of all the colleges and universities are in the (not so) Golden State. I was also very leery of anything within the confines of the Northeast Corridor. If a position had opened up at Dartmouth of the University of New Hampshire I would have been all over them; even Vermont or Middlebury – even though I could probably count on not getting tenure due to my radically unLeft politics. So, the Middle South, Southeast and Texas were the regions that I most seriously concentrated on due to a combination of factors: low cost of living including low tax burdens and one that was close to family. I can say though, that if a position opened up at Portland State, and I had been offered, I seriously would have considered it, but I would have moved to Vancouver.

  • Michael B.

    @Cincinnatus

    “That’s why I mentioned Maryland’s attempt at a millionaire’s tax: after it was instituted, millionaire’s literally fled the state for more favorable climes. Maryland was thus forced to abolish the tax in 2010.”

    Do you have a source about millionaires fleeing the state, with actual numbers? I pretty much agree with Todd on the issue. While I’m sure there are isolated situations, it’s difficult for me to imagine many individuals actually taking the tax rate into serious consideration when deciding where to move.

    Also, the millionaire’s tax expired. That’s a big difference than “abolished”.

    Lastly, I don’t think your thoughts about the super-rich being easily able to move is not without merit. I’m reminded of the facebook co-founder who is giving up his US citizenship to avoid his tax bill. So it’s perhaps time for some new tax laws to close loopholes like this. (I personally think that’s his right, but they should deport him.)

  • Michael B.

    @Cincinnatus

    “That’s why I mentioned Maryland’s attempt at a millionaire’s tax: after it was instituted, millionaire’s literally fled the state for more favorable climes. Maryland was thus forced to abolish the tax in 2010.”

    Do you have a source about millionaires fleeing the state, with actual numbers? I pretty much agree with Todd on the issue. While I’m sure there are isolated situations, it’s difficult for me to imagine many individuals actually taking the tax rate into serious consideration when deciding where to move.

    Also, the millionaire’s tax expired. That’s a big difference than “abolished”.

    Lastly, I don’t think your thoughts about the super-rich being easily able to move is not without merit. I’m reminded of the facebook co-founder who is giving up his US citizenship to avoid his tax bill. So it’s perhaps time for some new tax laws to close loopholes like this. (I personally think that’s his right, but they should deport him.)

  • Klasie Kraalogies

    Of course, a large portion of the folks living in around Washington, including both VA and MD, are dependant, directly or indirectly, on funds that find their origin in the taxpayer’s pocket, so there is a certain touch of irony in this whole debate :)

  • Klasie Kraalogies

    Of course, a large portion of the folks living in around Washington, including both VA and MD, are dependant, directly or indirectly, on funds that find their origin in the taxpayer’s pocket, so there is a certain touch of irony in this whole debate :)

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    @23 good point, Klasie

  • http://www.biblegateway.com/versions/Contemporary-English-Version-CEV-Bible/ sg

    @23 good point, Klasie

  • Michael B.

    @23

    Good point, Klasie. You can’t bite the hand that feeds you.

  • Michael B.

    @23

    Good point, Klasie. You can’t bite the hand that feeds you.


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