2012Jul9 Tipping point?
Taxation with representation ain't so hot either. ~ Gerald Barzan
A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich.
The study, by the anti-tax group Change Maryland, says that a net 31,000 residents left the state between 2007 and 2010, the tenure of a "millionaire's tax" pushed through by Gov. Martin O'Malley. The tax, which expired in 2010, imposed a rate of 6.25 percent on incomes of more than $1 million a year.
The Change Maryland study found that the tax cost Maryland $1.7 billion in lost tax revenues. A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows.
“Maryland has reached the point of diminishing returns. We're taxing people too much and people are voting with their feet," said Change Maryland Chairman Larry Hogan. “Until we change our focus from tax increases to increasing the tax base, more people are simply going to leave, leading to a downward spiral of raising revenues on fewer citizens."
The Class of 2012 may have few reasons to celebrate this year. Along with the long-term unemployed, experts say their prospects are the bleakest among all job-seekers.
The U.S. economy added a lower-than-expected 80,000 jobs last month, according to data Friday from the Labor Department. Though the overall unemployment rate remained unchanged at 8.2%, experts say this year’s 1.8 million college graduates have a rough job search ahead. “Over the last five years, the jobs situation has gotten increasingly intense for each successive graduating class,” says Paul T. Conway, president of Generation Opportunity, a non-profit think-tank based in Arlington, Va. “Their concern is now palpable.”
But if all the young people who’ve already given up looking for jobs are included — the 1.7 million people aged 18-29 who’ve been out of work for more than a year — the latest 8.2% unemployment figure would be closer to 16.8% for that age group, Conway says. That’s the highest unemployment rate for that age group since World War II. “Their story is one of few opportunities, delayed dreams, and stalled careers,” he says.
Faced with competition from older workers, young professionals are accepting jobs for less money. College graduates who obtained their first job between 2009 and 2011 earned $27,000 a year or 10% less than those who entered the workforce in the two previous years, the Rutgers survey found. Van Horn says many of this year’s graduates lucky enough to find employment will be disappointed with their salary. Mark Mulholland, 22, a history major from the University of Virginia, graduated in May 2012 and is now looking for work in communications. “My hope is to gain valuable experience rather than a massive salary,” he says. His target? $40,000 a year.
The economy is so good in North Dakota, it’s almost like being in another country.
Although Friday’s lackluster national jobs report may have intensified the already deep anxiety among voters about the sluggish state of the economy, here in the nation’s northern reaches, the concerns are exactly the opposite: how to build roads and schools and houses fast enough to keep up with an astounding population boom that has sprung up alongside the country’s most roaring state-level economy.
Good years for North Dakota farming, a new technology sector and — most significant — a dramatic oil rush in the state’s west and north have combined to produce an economic explosion that is the envy of the rest of the country — a 3 percent unemployment rate and rising household incomes and state revenue.