Let's just say some of us saw this coming....
One of Maryland's budget-balancing tactics - asking millionaires to pay more money to the state - appears to be backfiring as the number of the highest-earning taxpayers dwindles with the flagging economy....
....But as the state comptroller's office sifts through this year's returns, it is finding that the number of Marylanders with more than $1 million in taxable income who filed by the end of April has fallen by one-third, to about 2,000. Taxes collected from those returns as of last month have declined by roughly $100 million.
- The Baltimore Sun, 5/14/2009
That's because the General Assembly as a whole refuses to act like grown ups and live within their means. Instead of acting responsibly and reducing state spending last year when they had to opportunity, they chose to approval O'Malley's irresponsible tax hikes, and bless his near immoral increase in discretionary state spending. Instead of cutting spending to manageable levels, Democrats railroaded a $2 billion tax increase to cover a $500 million shortfall, and then added $1.5 billion in spending just to break even.
No reasonably intelligent person would think that's a good idea. It's an even worse idea when you considered, as conservatives have noted time and time again, that tax revenues decrease when individuals and businesses change their spending habits or leave the state entirely.
- Brian Griffiths, 9/4/2008
Still, the "substantial decline" in million-dollar earners filing on time was enough for the comptroller's office to announce that it will "be thoroughly analyzing these returns and their implications." And it was enough for opponents of the state's new surcharge to say, in essence, "I told you so."
"I don't think anyone can dispute that some people have left Maryland," said Senate Minority Leader Allan H. Kittleman (R-Howard). "That's what we were trying to explain when we were voting on this."
- Washington Post, 5/14/2009
It's true that the housing and retail sectors being down are going to lead to lower tax revenues. But what the writers do not take into account, naturally, is the decrease in tax revenues due to the increases in taxes. I have noted before that when tax rates are increased, revenues decrease. This is particularly true when you make it a point to pass taxes targeted at those with the means to leave.
- Brian Griffiths, 7/13/2008
"This is not an unexpected development, but it is a very unfortunate development," Schuh said. "It is deja vu all over again."
- The Captial, 5/14/2009
Of course one thing that we noted time and again was the fact that increases in taxes would lead to decrease tax revenues. While a small portion of that can be attributed to the national economy, the bulk of the difference in revenues collected vis-a-vis revenues projected has a lot to do with the impact of this profligate spending and irresponsible tax hikes.
- Brian Griffiths, 7/9/2009
So, we are going to go ahead and try to further fleece those Maryland taxpayers who are simultaneously most able to pay more taxes and able to pick up and move someplace that their tax burden won't be so high? This is what passes for fiscal responsibility in the minds of Maryland Democrats?
- Brian Griffiths, 3/27/2008
Labels: economics, O'Malley, O'Malleynomics, Taxes, wasteful spending