The Time is Right to Reinstate the Millionaires' Tax

Maryland is now leading the nation in number of millionaires. (See the AP story printed in the Baltimore Sun, and more coverage about our state's standing and the millionaires' tax in the Gazette of Business and Politics.) A rate change back to prior levels is needed, it would produce substantial revenue, and it shouldn't be feared.

Having assets greater than one million isn’t the same as having an income that exceeds one million, and therefore, the pool of “millionaires” to be taxed at a higher rate would be much smaller. Still, we are a wealthy state, and we have many residents capable of contributing more fairly.

Will we drive them out by a small increase in their tax obligation? Not if past experience is a guide, as the Center for Budget and Policy Priorities has detailed in a recently released study, and as was found in New Jersey after it implemented a millionaires' tax

If we reimpose a millionaires' tax, we can expect to reap about $87 million dollars each year.

Last year, MBTPI wrote a policy paper about this issue, and the points made then remain valid today.

This is the right time to get our state's wealthiest to help pay for the quality of life, education, and other benefits that are at risk if we resort to more cuts rather than reasonable revenue raising.