A recent Wall Street Journal op-ed says Governor Moore’s proposed policies are leading to “The Californification of Maryland.” The op-ed specifically commented on Moore’s proposed tax plan, which he claims 82 percent of taxpayers will receive a cut or see no change to their taxes. However, the plan would impose tax increases and capital gains increases on wealthy Marylanders. When considering areas with high local tax rate, including in Baltimore, if the proposed budget is approved, the combined state and local tax rates for some residents could be larger than other surrounding states.
Californification: Stephen Slivinski, senior fellow at the Cato Institute, says that “California drove people away by raising income taxes on people above a million dollars, and so they were going to more favorable business and residential climates like Nevada or Arizona. Maryland’s governor might drive people to West Virginia, which is on a tax cutting trend currently, or to Pennsylvania, which has a flat income tax rate with a lower rate than what Maryland even currently has.”
