In Maryland, Higher Taxes Chase Out Rich: Study

[mandym]

A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich.

The study, by the anti-tax group Change Maryland, says that a net 31,000 residents left the state between 2007 and 2010, the tenure of a "millionaire's tax" pushed through by Gov. Martin O'Malley. The tax, which expired in 2010, in imposed a rate of 6.25 percent on incomes of more than $1 million a year.

The Change Maryland study found that the tax cost Maryland $1.7 billion in lost tax revenues. A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows.

In total, Maryland has added 24 new taxes or fees in recent years, Change Maryland says. Florida, which has no income-tax, has been a large recipient of Maryland's exiled wealthy.

http://www.cnbc.com/id/48120446

 

[InTheLight]

Interesting article but no hard evidence is presented that the bulk of the 31,000 people that left Maryland were wealthy, except "A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows."

Found this article from 2010, when the millionaire tax in Maryland expired, which seems to support the OP's article:

For the fourth year in a row, Maryland has the second highest number of millionaires per capita, according to a report by the Phoenix Affluent Marketing Service.
Despite the recession, Maryland has seen an increase in the number of millionaire households since at least 2006, when it ranked third with 6.2 percent of households. In 2007, the state rose to the number two position with 7.1 percent — the highest since 2006. In 2008, the percentage declined to 6.9, and in 2009 it dropped to 6.3 percent.

 

[Crabtownboy]

I cannot find a link, but years ago I read that one third of the names in the Montgomery country, MD phone book change each year. Lots of people moving in and out is nothing new. The same is true in other Maryland urban areas. It is a very transient area.

 

[Jack Matthews]

The problem with that study is credibility. It was conducted by a group that is noted in the article as an anti tax group. That should tell you right away what their conclusion will be, regardless of what facts they find.

"A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows."


The state's wealthiest counties also happen to be its most populated, which would explain why they have the largest outflow. Considering that they also happen to be counties in the Washington-Baltimore metro area, which has a higher rate of people moving in and out than just about any place else in the US, the numbers actually seem a bit low.

The fact that 31,000 people left Maryland and many of them moved to Florida isn't suprising. Florida is where many people from the Northeast want to move when they retire.