Millionaires tax was a failure

December 01, 2009

Maryland's millionaires tax was enacted to raise an additional $106 million from taxpayers making more than $1 million. The results were that revenue collected from taxpayers in that category fell by $100 million.

Sean Dobson's arguments are logical ("Millionaires aren't fleeing Md.," Readers respond, Nov. 24), but a few moments of thought can identify factors that he did not consider.

It is not the same taxpayers who make more than $1 million in any given year. Some of those may not have gotten out in time and so had to file returns for a partial year's residence in Maryland. What about all the other revenue lost when a high-income taxpayer leaves the state, such as real estate and sales taxes?

The problem with this type of argument is that, to reach a valid conclusion, all possibilities need to be factored in. Given the complexity of tax law and the ingenuity of tax lawyers, that is impossible.

All of the tortured logic notwithstanding, a tax was passed to increase revenue by $106 million. The tax collected was $100 million less, a $206 million loss in projected revenue. It didn't work.Ted Harka, Phoenix


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