If Maryland is trying to encourage people to move out of their state, they are doing a great job.
Maryland accounted for the largest taxpayer exodus of any state in the region between 2007 and 2010, with a net migration resulting in 31,000 residents having left the state. Where did most of them go? Virginia. Virginia is now home to nearly 11,500 former Marylanders—a shift of $390 million from the tax rolls of one state to another, according to the non-partisan Tax Foundation.
Why is this happening? Years of tax increases.
Since 2007, taxes and fees have been raised 24 times, taking an additional $2.4 billion out of the economy each year. That explains why two states with similar economies, demographics, and a shared dependence on federal government employment and procurement sharply diverge in job growth.
It is no secret. There are many things a state can do to make itself less appealing to taxpayers and business and raising taxes is one of them. This is something that Kentucky has been battling for some time now.
Policy makers in states that are losing jobs, taxpayers and business investments need to take a look at neighboring states and jot down a few notes. Raising taxes makes a state less attractive to businesses. Businesses create jobs. People want to live where there is work.