“Millionaires Go Missing: Maryland’s fleeced taxpayers fight back.” Wall Street Journal, 26 May 2009: A18
Maryland raised the top marginal income tax rate to 6.25% (for millionaires) and instead of raising an additional $106 million in revenue, the state of Maryland lost a third of its millionaires. Of these, some were lost due to the recession and others moved. No statitics are available on what percentage of the millionaires moved.
Maryland’s state tax rate starts at 2% (Comptroller of Maryland: Income Tax Information) The difference is $42,500 per million dollars.
“However, this is one reason that depending on the rich to finance government is so ill-advised: Progressive tax rates create mountains of cash during good times that vanish during recessions.”