The Wall Street Journal has a story today on the experience of Maryland, which  created a “millionaire” tax bracket to capture additional tax revenue from a top 6.35% marginal rate.  (Link here, subscription may be required) A year later, 1/3 of Maryland’s millionaires have vanished from the rolls.  While it’s entirely possible that many of these millionaires disappeared due to the stock market and real estate crashes, it will be interesting to see how many individuals changed their residency or moved out of state to more tax-friendly climes.   The article notes that Maryland’s wealthy are more likely to own property in states with lower taxes, even nearby ones like Virginia, making escape not only possible but easy.  Such will probably not be the case for working families when the tax increases fall on them to make up for the flight of the rich.

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