Friday, May 30, 2014

Latest IRS Figures Show Continued Decline in Maryland's Tax Base

The David Craig campaign announced today the latest analysis of Internal Revenue Service tax migration numbers that show continued decline in Maryland’s ability to retain its tax base.  Released last month, the IRS figures advance a decade-long trend where the state lost a net $232 million in adjusted gross incomes during 2010 and 2011.

“We must stop the mass exodus of people leaving Maryland,” said Craig.  “Everywhere I go people tell me they are moving to Delaware or Virginia and these numbers prove it.”

Regionally, Maryland lost the most net incomes to Virginia at $105 million followed by North Carolina at $59 million.   That was closely followed by Texas at $58 million.  Overall, Florida is siphoning off most of Maryland’s earning power at $175 million.

From 2000 to 2010, Maryland lost $5.5 billion in taxable revenues to other states.  To reverse the net outflow of the tax base, David Craig announced a plan in February to reduce and eventually eliminate Maryland’s income tax to stop the flight of businesses  and “to keep families together.” A tenth generation Marylander, he would prefer to keep his children and grandchildren in the state.

“O’Malley and Brown’s record tax increases are hastening the decline of Maryland,” said Craig. “No state can provide essential transportation, public safety and health and education services and make other needed investments with a declining tax base.”

A Gallup poll released last month shows 47% of Marylanders would leave if they could, the third highest state in the nation where people prefer to live elsewhere.   Taxes and jobs are the main reasons Marylanders gave for wanting to leave, with the former being cited more than any other state except New York and Illinois. 

Maryland’s decline was the second worst in the region after Pennsylvania and 13th worst in the nation in dollar terms.  Maryland joins high-taxed and rust-belt states including New York, Illinois, New Jersey, California and part of the mid-west that loses taxpayers at alarming rates.

The top two states in the nation attracting taxpayers are Florida and Texas, both of which have no personal income tax and collectively gained nearly $7.5 billion in incomes during 2010 and 2011 alone.

1. attachment:  IRS tax migration state ranking 

2. IRS tax migration statistics
3. Washington Examiner:  coverage from national perspective

4. Gallup Economy: poll 

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