Taxing The Rich Has It's Downside

See Maryland's Mobile Millionaires: Income tax rates go up, rich taxpayers vanish. From the WSJ, 3-12-2010, p. A20. Exerpts:

"...after passing a millionaire surtax nearly one-third of Maryland's millionaires had gone missing, thus contributing to a decline in state revenues."

"The number of millionaire tax returns fell sharply to 5,529 from 7,898 in 2007, a 30% tumble. The taxes paid by rich filers fell by 22%, and instead of their payments increasing by $106 million, they fell by some $257 million."

"Yes, a big part of that decline results from the recession that eroded incomes, especially from capital gains. But there is also little doubt that some rich people moved out or filed their taxes in other states with lower burdens. One-in-eight millionaires who filed a Maryland tax return in 2007 filed no return in 2008."

"...Maryland lost $1 billion of its net tax base in 2008 by residents moving to other states."