Maryland, My Maryland
While politicians in Washington debate the impact of tax increases on economic growth, an interesting experiment is shaping up in the surrounding suburbs.
With Maryland Governor Martin O'Malley shepherding another tax increase through the legislature last week, even Democratic politicians in the state's wealthy Montgomery County have begun worrying that higher-income earners will flee across the Potomac to lower-tax suburbs like Fairfax County in Virginia.
Delegate Benjamin F. Kramer from Montgomery County recently told The Washington Post that he worried about a tipping point. “I’m concerned there’s a lack of understanding about the implications. Are we making Montgomery County uncompetitive with Fairfax?"
According to numbers that The Wall Street Journal provided in an editorial today, the answer appears to be yes. Here's an excerpt:
A family of four earning $250,000 a year will be able to save money by moving to Washington, D.C., arguably the most liberal city in America. The same family can save $6,000 a year by relocating across the Potomac River to Virginia, where the top tax rate is 5.75%, according to the Tax Foundation.
- Comment (9)
- · Quote
- · UnfollowFollow (2)
Comments:
Jan '11
Re: Maryland, My Maryland
As a resident of Maryland, I sometimes wonder who coined the idea of states as "laboratories of democracy."
People don't leave, but businesses do, and they take their tax revenue with them ... which in turn ... increases the burden of taxes that local politicians want to extract from residents.
May '10
Re: Maryland, My Maryland
The last thing Virginia needs is more democrats fleeing across the border. The rich may leave Maryland to escape liberalism, but they won't change their vote.
Re: Maryland, My Maryland
KC, some states are conventional laboratories. Some are more like the island of Dr. Moreau.
Jan '11
Re: Maryland, My Maryland
That's hilarious.
And in Maryland, no one can hear you scream ...
Sep '11
Re: Maryland, My Maryland
This is exactly the problem I have with all the folks coming from CA to TX...
May '10
Re: Maryland, My Maryland
Interesting you mention California. My brother and his girlfriend moved to Cali (Carlsbad) five years ago, and started planning to open a business. They had investors, potential locations, a business plan, etc., but what they didn't have was the stomach to deal with the California bureaucracy which makes it almost impossible for people to open businesses. So they moved back to Annapolis to open their restaurant. We'll open our next location in Virginia... Ha!
Re: Maryland, My Maryland
Perhaps someone will publish a book called "What's the Matter with Maryland."
Re: Maryland, My Maryland
Personally I am heartened to see Democrats in the Washington suburbs start to make the point that higher taxes are uncompetitive. Perhaps one day they'll apply those same principles to national policies, too.
Nov '10
Re: Maryland, My Maryland
Annapolis also passed legislation on Monday passing the buck for all of the unfunded liabilities of the teachers' pensions on to the the individual counties, giving them large budgetary burdens. This gives the state more money, but drains the individual counties and will force many of them to increase taxes still more.