Where have all the rich folks gone?
Long time passing
Where have all the rich folks gone?
Long time ago
Where have all the rich folks gone?
We overtaxed them everyone.
When will we ever learn?
When will we ever learn?
(Apologies to Pete Seeger)
Maryland
In 2008 the state of Maryland introduced a millionaire’s tax targeting those dastardly rich folks to take the state’s fair share of their wealth to help pay for the state’s expanding government. But a funny thing happened on the way to the state treasury, about one-third of the state’s millionaires disappeared. In addition, the taxes paid by the rich fell by 22% and instead of increasing collections by $106 million, revenue fell by $257 million. Oops.
Oregon
Not learning anything from Maryland, in 2009, Oregon raised taxes on the top 2% of earners in that state to help close a budget gap. Now the results are in and revenues are one-third less than they had projected. A similar situation to Maryland showed that about twenty-five percent of the rich are AWOL. But don’t worry, the legislators in Salem are convinced the falloff in revenue is due to the lousy economy and the revenue will come pouring in once the economy recovers. I wouldn’t bet on it.
Warning
Be forewarned though, the progressives are catching on and will push harder and harder to move these kinds of taxes to the federal level so that the wealthy can’t vote with their feet, at least not within the United States. Richard Ravitch has said as much, and the ire on display in Congress during this lame duck session regarding extending the current tax rates reveals their true colors.
We need to overhaul the tax code so that it is greatly simplified, with lower rates, and that ends the class warfare.
That’s my opinion; I’d like to know yours. Please comment below.
