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Surprise: Higher taxes in Maryland chasing out the wealthy
Hotair ^ | 07/09/2012 | Erika Johnsen

Posted on 07/09/2012 5:16:22 PM PDT by SeekAndFind

In light of President Obama's exhortation to hike taxes on those making more than $250,000 a year earlier today, here's a well-timed piece of evidence demonstrating what happens when you decide you'd rather engage in populist persecution and punish the wealthy for their economic contributions rather than make tough budget-cutting decisions. A new report indicates that the state of Maryland is bleeding residents and tax revenue — an emigration likely due to the wildly blue state's 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.

“Maryland has reached the point of diminishing returns. We’re taxing people too much and people are voting with their feet,” said Change Maryland Chairman Larry Hogan. “Until we change our focus from tax increases to increasing the tax base, more people are simply going to leave, leading to a downward spiral of raising revenues on fewer citizens.”

Yet again, one of the United States’ laboratories-of-democracy offers us another example of the results of poor public policy; in this case, desperately clinging to tax hikes on the wealthy as a solution to your problems (which, by the way, they aren’t): Raise taxes on the entrepreneurs, business owners, inventors, innovators, movers and shakers all you want, but you can’t reasonably expect that they’ll stick around to pay ‘em. At some point, it’s going to become worthwhile for the moneymakers to jump ship. In 2011 alone, a record 1,800 individuals renounced their United States citizenship — and if that doesn’t provide a red flag about our tax code, I don’t know what does.

Here’s just one case in point that broke earlier today:

Denise Rich, the wealthy socialite and former wife of pardoned billionaire trader Marc Rich, has given up her U.S. citizenship – and, with it, much of her U.S. tax bill.

Rich, 68, a Grammy-nominated songwriter and glossy figure in Democratic and European royalty circles, renounced her American passport in November, according to her lawyer. …

By dumping her U.S. passport, Rich likely will save tens of millions of dollars or more in U.S. taxes over the long haul, tax lawyers say.



TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Maryland
KEYWORDS: 2012election; duh; election2012; kenyanbornmuzzie; maryland; marylandtaxes; matylandtaxes; mittromney; omalley; taxes

1 posted on 07/09/2012 5:16:27 PM PDT by SeekAndFind
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To: SeekAndFind

Wll if the wealthy are Dems, Maryland can keep them. If some of the wealthy are Conservatives they should consider coming to Texas


2 posted on 07/09/2012 5:18:08 PM PDT by austinaero (Obama or America - can't have both)
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To: SeekAndFind

TSTUTLC

Too Stupid To Understand The Laffer Curve


3 posted on 07/09/2012 5:20:14 PM PDT by samtheman (The Trillion Dollar ObamaCareTax definitely is a tax; just ask the US Supreme Court.)
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To: austinaero

One can move from one state to another and renounce his/her citizenship of the state ... but how does one move OUT of the USA without being called a traitor?


4 posted on 07/09/2012 5:21:01 PM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind

Obama won Maryland by 26% in 2008: 62% Obama, 36% McCain. “When you spread the wealth around . . .”


5 posted on 07/09/2012 5:22:02 PM PDT by Pollster1 (Freedom is never more than one generation away from extinction. - Ronald Reagan)
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To: SeekAndFind

Run,rich people,run! Escape the bottomless pit that are blue states!


6 posted on 07/09/2012 5:22:14 PM PDT by Leep (Enemy of the StatistI)
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To: Leep

Oh,and don’t look back else you turn to stone!


7 posted on 07/09/2012 5:23:23 PM PDT by Leep (Enemy of the StatistI)
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To: SeekAndFind
but how does one move OUT of the USA without being called a traitor?

Easy when it's not the USA any more.

8 posted on 07/09/2012 5:23:30 PM PDT by johniegrad
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To: samtheman
Too Stupid To Understand The Laffer Curve

And that's where your premise is flawed. It's not that they don't understand it. It's that they don't care. As Baraq Obama said himself to Charlie Gibson back in 2008:

"Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness."

http://taxfoundation.org/blog/obama-and-gibson-capital-gains-tax-exchange

9 posted on 07/09/2012 5:27:01 PM PDT by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: SeekAndFind

Have been hearing about Denise Rich forfeiting her U.S.citizenship, but what country has she adopted, or put another way, what country would have her?

France has long been the Hollywood elite’s favorite European destination, but now that Hollande has upped income taxes for the wealthy to 78%, where’s left for a lefty girl or guy to go ?


10 posted on 07/09/2012 5:27:42 PM PDT by EDINVA
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To: SeekAndFind

Interesting to me that Maryland is sucking bilgewater despite the largess of the FedGov in that region of the country.

How many of those 66,000 SocSec peeps are in Baltimore?


11 posted on 07/09/2012 5:29:32 PM PDT by nascarnation
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To: Leep

I would be very interested to learn how many left Montgomery County, perhaps more heavily Democrat than any other county with PG county close behind. At least that’s the way it was when my wife and I lived in Anne Arundel County for several years until 1996. Are the Libruls learning something, or is that too much to hope for?


12 posted on 07/09/2012 5:30:41 PM PDT by DanMiller (Dan Miller)
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To: EDINVA

I don’t know for sure, but a lot of the Euro Formula 1 racing drivers who make big bucks live in Monaco for tax purposes.


13 posted on 07/09/2012 5:31:43 PM PDT by nascarnation
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To: Hoodat

I know some of it is in the name of “fairness”. But a lot of it really is an inability to understand the simplest and most basic of economic realities, that people aren’t going to work for nothing and that rich people aren’t going to sit in one place while all their money gets stolen.

Where are they going to get that understanding? In the government schools?


14 posted on 07/09/2012 5:31:59 PM PDT by samtheman (The Trillion Dollar ObamaCareTax definitely is a tax; just ask the US Supreme Court.)
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To: SeekAndFind
If Maryland would just directly tax the poor (instead of the "lottery" scam to extract money from the poor)and leave the "rich" alone, maybe the "poor" would move out and solve the problem.

...the deadbeats would be gone and the people who work and pay the bills would stay....

....but naaaaahhhh! the stupid Dem pols will not do something that has a chance of working....

...never forget:.......doing the same thing over and over and expecting different results is..

..well, you know...

15 posted on 07/09/2012 5:33:06 PM PDT by B.O. Plenty (Elections have consequences....)
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To: EDINVA

RE: Denise Rich forfeiting US Citizenship.

According to Reuters...

http://www.reuters.com/article/2012/07/09/entertainment-us-usa-immigration-deniser-idUSBRE8680MN20120709

Rich, who was born in Worcester, Massachusetts, has Austrian citizenship through her deceased father, said Michael Heidt, a lawyer in Hollywood, Florida, who represented her in a recent lawsuit.

He said Rich had dumped her U.S. passport “so that she can be closer to her family and to Peter Cervinka, her long-time partner.” Rich’s two daughters live in London; Cervinka, a wealthy property developer, is an Austrian national. Rich plans to make London her main residence and does not intend to acquire other passports, Heidt said.

[SNIP]

Rich will escape future U.S. taxes but possibly not all current ones. In 2008, Congress imposed an expatriation tax on persons with a net worth of more than $2 million who dump their U.S. citizenship or permanent residency. Under the law, those people owe an “exit tax” on their worldwide property, computed at a fair market value the day before they leave. But tax lawyers say the tax can be reduced or avoided by structuring asset holdings through foreign annuities.

While Austria, like the United States, generally taxes its citizens on their worldwide income, it has generous tax breaks for citizens who spend half the year abroad.

In January, Rich put her 5th Avenue penthouse in New York on the market for $65 million, according to the listing agent, The Corcoran Group. New York property records show Rich acquired a 100 percent stake in the apartment, described by Corcoran as “the epitome of luxury and grandeur,” for $200,000 in 2006. Bonnie Evans, the Corcoran broker for the property, declined to discuss details.

COOK ISLANDS TRUST

The recent lawsuit against Rich was filed on behalf of Lee Goldberg, the former protector of a Cook Islands trust of which Rich is a beneficiary, in February. The case was dismissed in April, court records show.

The Cook Islands, a South Pacific tax haven, offers Swiss-style secrecy for wealthy investors.

CLICK ABOVE LINK FOR THE REST...


16 posted on 07/09/2012 5:34:00 PM PDT by SeekAndFind (bOTRT)
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To: EDINVA; nascarnation
For your Information...


17 posted on 07/09/2012 5:35:25 PM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind

Boat Luxury Tax Drives an Industry Aground

Published: January 03, 1991

To the Editor:

I have been in the boat business since 1972. The luxury tax that came into effect this year is in general unfair, but as it pertains to boats, grossly so. My industry was singled out and is being crushed by this tax. This will translate into lost jobs for about 600,000 people if something is not done quickly.

The luxury tax on new boats is a cruel hoax played on the public at the expense of those who work in the industry. The United States boat industry, and the 600,000 workers employed directly in manufacturing, were served as the sacrificial lamb to appease those who insisted on soaking the rich during Federal budget negotiations.

The Treasury Department has acknowledged that the 10 percent luxury tax on boats will not produce tax revenues to help solve the budget crisis. The luxury tax revenue will not even cover the income tax revenue lost to unemployed workers and bankrupt manufacturers.


18 posted on 07/09/2012 5:35:52 PM PDT by Calusa (The pump don't work cause the vandals took the handles. Quoth Bob Dylan.)
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To: All

Problem #1. The mega rich in 1776 were the ones who lead the charge. Now they are the ones who run and hide with their wealth.

Or they are Democrat contributors who are protected by their religion “Eugenics”.


19 posted on 07/09/2012 5:40:04 PM PDT by liberty or death
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To: SeekAndFind

Not surprised.
Flight is one of our last freedoms we can truly depend upon.


20 posted on 07/09/2012 5:40:13 PM PDT by jongaltsr
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To: johniegrad
but how does one move OUT of the USA without being called a traitor?

Easy when it's not the USA any more.

Treason is not crime anymore in this country. Hanoi Jane Fonda and John Lurch Kerry are living proof.

21 posted on 07/09/2012 5:40:19 PM PDT by immadashell
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To: Calusa

Please build me a boat that I may escape this infernal country and live once again in freedom and true liberty.

I see few if any heroes who would stand and fight so as to reclaim the liberties we once accepted as those given by God and confirmed by the Constitution of this once great nation that we once honored.


22 posted on 07/09/2012 5:45:10 PM PDT by jongaltsr
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To: immadashell
Treason is not crime anymore in this country. Hanoi Jane Fonda and John Lurch Kerry are living proof.

The problem being that we leave to secure freedom for ourselves as Hanoi Jane / John Kerry (and their like) left because they could not secure their control over the freedom of everyone BUT for theirs.

France (as they suggested as their prime choice of residence) is not a country I would consider as a "Free" nation, but rather a country of the 'elite'.

23 posted on 07/09/2012 5:50:38 PM PDT by jongaltsr
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To: samtheman
high-skilled (working 90-hours a week) classes fleeing to escape low-skilled ("leisure") rent-seeking classes.
24 posted on 07/09/2012 5:51:21 PM PDT by 4Liberty (88% of Americans are NON-UNION. We value honest, peaceful Free trade-NOT protectionist CARTELS)
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To: jongaltsr

Correction - Sorry about that....

Kerry and Fonda did not LEAVE as we hoped and they threatened.

DAMN!D


25 posted on 07/09/2012 5:52:47 PM PDT by jongaltsr
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To: SeekAndFind; Abundy; Albion Wilde; AlwaysFree; AnnaSASsyFR; bayliving; BFM; cindy-true-supporter; ..

Maryland Depopulated “Freak State” PING!


26 posted on 07/09/2012 5:53:30 PM PDT by Tolerance Sucks Rocks (Obama should change his campaign slogan to "Yes, we am!" Sounds as stupid as his administration is.)
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To: austinaero

I love the idea of Texas but prefer the alpine mountains of western VA, where I will be in less than a year. The Tax Hell of The Peoples’ Republic of Maryland will be but a distant memory in a short while. Even at the most basic level of comparable taxes, my houses in MD and VA have nearly identical assessed value (actually VA is a bit higher now) property taxes in MD are 4 times higher.


27 posted on 07/09/2012 6:05:39 PM PDT by crusher (Political Correctness: Stalinism Without the Charm)
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To: SeekAndFind
"...but how does one move OUT of the USA without being called a traitor?"

Move to a State where the majority want to secede and become a Constitutional Republic and execute The Plan.

28 posted on 07/09/2012 6:07:54 PM PDT by Paladin2
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To: nascarnation

As posted @ #16, she adopted Austrian citizenship, I guess through her father who likely left in the 30s or 40s escaping a gas chamber there.

Rich’s adult children live in London and apparently that’s where she will spend most of her time. Fine by me.

I wonder if people who renounce US citizenship can still visit here, i.e., can she still hobnob with her buddies in NYC/LA, or only in Europe or other spots beyond our borders?


29 posted on 07/09/2012 6:09:34 PM PDT by EDINVA
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To: EDINVA
"what country would have her?"

She's got an Austrian Passport through her Dad. To live in GB and elsewhere.

30 posted on 07/09/2012 6:10:36 PM PDT by Paladin2
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To: EDINVA
If you are able to establish citizenship in a country whose residents are eligible to travel to the US using a visa, you will be able to do likewise.

I'm sure Denise would like to get back here and see BJ Clinton occasionally.


31 posted on 07/09/2012 6:16:57 PM PDT by nascarnation
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To: SeekAndFind

One can move from one state to another and renounce his/her citizenship of the state ... but how does one move OUT of the USA without being called a traitor?


Easy, if you are a lib you just renounce your US citizenship.


32 posted on 07/09/2012 6:43:18 PM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
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To: SeekAndFind

Doesn’t that graph speak volumes ??


33 posted on 07/09/2012 6:45:16 PM PDT by EDINVA
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To: Tolerance Sucks Rocks
Imagine that! They didn't get and stay rich by following their hearts. They are cold calculating machines and make their decisions based upon their financial self-interest and nothing else. No surprise that the notorious Denise Rich has renounced her citizenship. People talk about soulless corporations - the average corporation has more social conscience and commitment to the community than these rich wastrels.

Noblesse Oblige? Fugetaboutit! Dieu et mon Droit! Surely you jest! Me first and let the Devil take the hindmost! That's their creed - no national loyalty - no concern for fellow man.

I'd like to see how much they leave in the collection basket each Sunday. Oh, I forgot - they're too sophisticated to be churchgoers. Mammon is their god. Let him save them!



Genuflectimus non ad principem sed ad Principem Pacis!

Listen, O isles, unto me; and hearken, ye people, from far; The LORD hath called me from the womb; from the bowels of my mother hath he made mention of my name. (Isaiah 49:1 KJV)

34 posted on 07/09/2012 6:54:24 PM PDT by ConorMacNessa (HM/2 USN, 3/5 Marines RVN 1969 - St. Michael the Archangel defend us in Battle!)
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To: austinaero

Many have been escaping across the border into Virginia. Our state has been harvesting MD`s business base ever since Bob McDonnell came to office.


35 posted on 07/09/2012 6:59:09 PM PDT by ScottinVA (Buying Drain-O requires photo I.D... yet voting doesn't???)
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To: SeekAndFind

MAryland chasing rich democrats to Delaware..

So what... from one sewage drain field to another..


36 posted on 07/09/2012 7:10:43 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole..)
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To: jongaltsr
France (as they suggested as their prime choice of residence) is not a country I would consider as a "Free" nation, but rather a country of the 'elite'

My first and only trip to France was last year. The French government has its fingers in every pie. Every little facet of society was over-regulated and over-taxed then. As bad as this "big government" is, it pales in comparison to the repressive French state. With the new socialist regime in power it will only get worse. I will never go back.

37 posted on 07/09/2012 8:24:13 PM PDT by immadashell
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To: SeekAndFind

The definition of a traitor is someone who “shall consist only in levying War against them, or in adhering to their Enemies, giving them Aid and Comfort” at least according to the US constitution. So just giving up your US citizenship in no way meets this definition. So the question is why are you so mad that a few people are bailing on the US for economic reasons? That’s why the vast majority of people moved here, to take advantage of the freedoms and economic prosperity that the US offered at the time.

Well now, thanks to Roberts and various other nanny state do gooders, the US does not offer either the freedom or economic prosperity that it once did. Especially if you are rich, so it makes sense that those who want to keep more of what they’ve got will move on to greener pastures no big deal, live and let live. No need to get your panties in a bunch over it unless you feel that somehow they owe you something. The big deal and what I’m very angry about is all those idiots that have chipped away at my freedom and economic prosperity and made the US a place that people want to leave, those are the people you should be mad at, not the people leaving a sinking ship while they still can.


38 posted on 07/09/2012 9:50:37 PM PDT by trapped_in_LA
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To: SeekAndFind
A good chunk of BC (Baltimore County) now lives in the southern portions of York County (Pennsylvania). Both states are worse off. Maryland is even more liberal than it used to be, and the Marylanders have brought their (more) liberal ways to Pennsylvania. That process was accelerating through the ‘90’s, so this is not a new phenomena.
39 posted on 07/10/2012 5:22:58 AM PDT by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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