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December 5, 2011

Radio today: Tax incidence and Maryland millionaires

I'll be on the C4 show on WBAL today to talk about this column:

Gov. Martin O'Malley's notorious but temporary "millionaire tax" doesn't seem to have prompted rich folks to flee Maryland in much greater numbers than usual, according to the latest data. But that doesn't mean they're not fleeing, and it doesn't mean the tax should be resurrected, as some advocate.

Even without the millionaire surcharge that began in 2008 and expired in 2010, Maryland's income tax is sufficiently high to repel some of the wealthy. Add in this state's higher estate taxes, and we don't need another reason to push plutocrats into Virginia.

Read the whole thing here.

The theory of tax incidence says that those paying a tax increase are those who can least afford to avoid it. Conversely, those who can afford to avoid high taxes often do. People with million-dollar incomes can afford many things.

Posted by Jay Hancock at 9:58 AM | | Comments (1)
Categories: Taxes
        

Comments

"But that doesn't mean they're not fleeing"

Is fleeing a fair description or just hyperbole?
I'd suspect ordinary demographics is the larger factor just as with so many retirees of more ordinary means are moving on as they age out from their working years (by choice or not)... so are the millionaires moving on.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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