Heads Up For Governor Brown, the Mobile Rich Move

Russ Steele

I had posted about a study on the impact of Maryland taxing the rich before, but could not find the link. Now there is a new report out that  says wealthy Maryland residents may be moving out due to recent tax hikes.

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.

You can read the rest of the article HERE. Local government officials claim that taxes do not force people to move. However, the rich are highly mobile and can live just about any where and most chose to live where the taxes are lowest.

If the mobile rich in Maryland are moving, why not the California rich?  If Governor Brown’s tax initiative passes muster with the voters, he may be surprised by the number of rich people fleeing the state.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

3 Responses to Heads Up For Governor Brown, the Mobile Rich Move

  1. Sean says:

    The rich in Maryland and other high tax states may not even need to move. Consider that many wealthy have second homes that may be intended for retirement. These folks may have made their fortunes in Maryland but they may not be working near as much on a day to day basis as they used to. All they have to do is re-distribute their time so they spend more than have the year at their low tax retirement residence (making it the state they pay taxes into) and they mght still be living and and doing some work from their Maryland home. But remember O’Malley is engendering himself to the to the liberal elite. He wants to leave the state as well and move the 1600 Pennsylvania Ave.

  2. Arthur M. Day. says:

    I think I read somewhere that large numbers of CA’s wealthy had already joined the sane drain and the loss of tax revenue to CA was in the hundreds of millions.

  3. Dixon Cruickshank says:

    I’ll leave a light on

    In the past, as it may not be up to date but probably – own property here, get a Fla DL and file a Cert of Domcile and your a resident – excellent selling point in the 2nd home RE market – just say’in

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