People Can Run, But Can They Hide?

Maryland's Millionaires Missing

I knew this was going to happen, I just didn't know when or which step it would be.

I've already heard of professionals cutting back on their hours and working couples planning longer vacations to avoid becoming, in the eyes of government, the evil rich. Many that have studied hard, at great expense in several ways, made wise decisions and have managed to build themselves and their businesses into above-average income producers, are about to be penalized for their dedication and hard work. The charge verges on an explicit threat: join the masses or we'll put you there.

As we've studied in economics, finance and through our life's lessons, incentives are all that matter. The incentives vary of course, but we pursue activities that we believe we'll be rewarded for and eschew those that are less attractive, or disincentives. Achieving Americans are about to be soaked, and their reaction will be historic.

We've teetered on the 50% threshold for some time now, curiously so, in fact. Nearly half of this country pays no income taxes, while the other "half" ponies up for the US's operating expenses. The operating expenses, through political positioning, now include "refunds," entitlement programs, and bloated and fraudulent policies that benefit those with their hands out on the other side of the fence. And we're about to experience a January 1 surprise. That's waking up after a year of plugging along diligently, and blowing it out on New Year's eve to realize in a blurry drunken haze, you blew everything you've worked for on a terrible bet with some guys that mean business, and buying all your "less fortunate" friends drinks all night.

Some people are going to manage to skip out before the tab comes, and the manager sits down with a calculator to see what everyone left owes. Maryland's high taxes(some of the highest in the country, behind NY, NJ, Mass., and possibly a few other states) seem to already be opening the gates for permanent relocation. My lovely and humble state of SC stands to reap some benefits as permanent address boxes are checked in Hilton Head, Myrtle Beach, Charleston and other vacation spots. A low tax state that houses many vacation homes.

But can they hide? Not likely. In addition to the brain drain we're about to experience, I think we may see some major demographic shifts within our borders and elsewhere.

Being an ex-pat doesn't seem like the stretch it once was.