(Washington Examiner) - The number of high-income taxpayers in Maryland has dropped by one-third, raising concerns that the wealthy are fleeing the state for its tax-friendlier neighbors.
About 2,000 residents filed returns in the highest bracket of more than $1 million in taxable income in April, down from about 3,000 in April 2008, according to the most recent data from State Comptroller Peter Franchot. Final numbers, which he said likely would include at least several thousand more million-dollar earners, will become available in October after tax returns that received extensions are filed.
“There’s no denying that the [tax] increase has had an impact on a sector of our citizens,” Franchot said.
Last year, the cash-strapped Maryland General Assembly raised by three-quarters of a percentage point the personal income tax rate for people earning more than $1 million in taxable income. That includes small businesses that file as “S corporations,” meaning the income is not distributed solely to one individual.
Read the full story here: http://www.washingtonexaminer.com/local/Millionaires-flee-Maryland-taxes...
