March 11, 2010

Tax the Top, Hit the Middle

By Daniel Cross
"Tax the rich" has been the inveterate battle cry of liberals from the beginning. The left believes in creating massive entitlement and welfare programs all in the name of fairness. Equal rights, it seems, don't apply to the wealthy. Ironically, the idea only ends up hurting the very people it's supposed to help.Early in 2009, Maryland raised its tax rate to 6.25% for income earners of $1 million or more and saw a decline in tax revenue as high-income taxpayers emigrated to tax-friendlier states. While it may seem that few families make an income of a million dollars, sole proprietorships, partnerships, and many "S" corporations pass their earnings directly through to the individual, and that means that small businesses are the ones that get hurt the most.Tax increases of this kind have far-reaching consequences. Small businesses that move don't often take employees with them, and those that stay may be forced to cut back, resulting in higher unemployment numbers....(Read Full Article)