Posted on 03/16/2012 8:17:28 PM PDT by Tolerance Sucks Rocks
ANNAPOLIS — The Maryland Senate passed a $35.9 billion budget package Thursday that would increase income-tax rates on nearly all earners and impose a flat income tax on residents making more than $500,000 a year.
The spending plan would boost the state’s income-tax brackets by as much as 0.25 percentage point — a move expected to generate more than $500 million next fiscal year.
The budget bill passed after senators narrowly approved an amendment Wednesday night that would allow the state to tax “half-millionaires,” who make more than $500,000 annually, at the maximum 5.75 percent rate for every dollar they earn.
The “half-millionaire’s tax” — which would generate about $30 million on its own — was a major point of contention during Senate debate Thursday, with Republicans and some Democrats describing it as class warfare against the state’s wealthiest residents.
Under the proposal, a household that makes $501,000 a year — the minimum to quality for the flat tax — would pay over $2,500 more in taxes than a household that makes exactly $500,000.
Residents making less than $500,000 still would be taxed the traditional way, with gradually increasing rates applied to each chunk of income within a corresponding bracket.
Senate leaders said the change was needed to secure crucial votes from members of the Budget and Taxation Committee who had unsuccessfully pushed for a higher tax bracket on millionaires.
The last-minute amendment added to the across-the-board tax increase that the Senate approved in favor of a proposal by Gov. Martin O'Malley, a Democrat, to limit personal exemptions and itemized deductions on the top 20 percent of earners.
Mr. O'Malley’s plan would have garnered $182 million in income-tax increases, although it included other revenue-generating proposals that the Senate rejected.
(Excerpt) Read more at washingtontimes.com ...
Bend over.
Maryland “Freak State” PING!
These guys never learn. This won’t generate more revenue. It will generate less. The people who are targeted will simply leave or find some other way around it.
I think Va. should have a special tax on all people from Md. moving who move in.
The government (state and federal) is attempting to leach every cent out of the populace they can in order to cover the huge deficient compiling daily by the Obama regime.
They won’t have to move very far to be ex-Marylanders, it ain’t a big state
This will work of course because people who are smart enough to make 1/2 M are too stupid to figure out how to establish residency in nearby states while maintaining a weekend home in Md.
Punishing people for being productive has always been a great idea. That has worked so well for California, Michigan, Louisiana and so many other democratic paradises...
Sure. Ask the UK and Kalipornia how much they have reaped from tax increases.
Do you give them a shove back to where they came from?
Swimmers? Add a few snakeheads and it would be a classic movie.
They will never get the revenue. The rich can afford to move and/or hire tax attorney to funnel money.
People are willing to pay more to stay in Maryland? Don’t believe it. If beautiful, sunny California couldn’t pull it off I don’t think Maryland can.
“half Millionaires tax” What is next the “You got a dollar in your pocket tax” Knock it off already with the taxing
Exactly.
“Marylanders making $500K may pay a whole lot more tax”
Let me help a bit with the headline:
“SOME Marylanders making $500K may pay a whole lot more tax”
Others will not, they will either:
1) Move to cheaper states
2) Earn less reportable income
3) Better hide their income
As Maryland will soon find out Tol, people with money have options, and that if you REALLY want to increase government revenues, then you must go after the Middle Class (who have far fewer ways to respond).
High earners in the private sector have talents that are in demand, which allow them to move to another state with more sane tax laws. This is something politicians and public sector unions demanding high taxes always overlook, since the only talent they have is finding ways to confiscate other peoples money.
or maybe they will do as liberals and hide their money in a “non-profit” organization that only has themselves as an officer/employee.
http://www.freerepublic.com/focus/f-chat/2860199/posts
“The last-minute amendment added to the across-the-board tax increase that the Senate approved in favor of a proposal by Gov. Martin O’Malley, a Democrat, to limit personal exemptions and itemized deductions on the top 20 percent of earners.”
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top 20%? I think it’s getting time for me to flee Maryland and go back to my native state of Pennsylvania. It wouldn’t be that much of a commute back to my job in the People’s Republic of Maryland and I understand that PA doesn’t apply their state/local tax to pension income.
Additional benefits would be the ability to vote in PA & have my vote actually mean something and the ability to gas up in PA to avoid the new 6% sales tax O’Malley is proposing to apply to gasoline sales.
you forgot (4) Invest in federally sponsored projects that give them a tax write-off.
Lots of people with Chicago-style connections in MD.
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