I have submitted comments in opposition to Governor Hogan’s proposed “Retirement Tax Reduction Act of 2020.” The bill is an unwarranted tax give-away to the well-off that will poke a large hole in state and local revenues.
4 thoughts on “Retirement Tax Reduction Act of 2020”
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That’s not to say that there isn’t an issue. I know a number of people who maintain residences in in states with no income tax (Florida, Nevada), staying there (or in one case, purporting to stay there) for at least half the year. And these are people who can easily afford the tax, but just want to minimize the bite. I’m not sure what can be done about this, any more than one can prevent corporations from incorporating in Delaware but doing business elsewhere.
Generally speaking, there is no tax benefit to incorporating in Delaware. Rather, Delaware is useful because the business organization statutes allow the majority owners to stiff the minority owners more easily.
Any population loss at all likely represents an economic loss for the state. To keep an economy vibrant you’d want to see population growth of at least 1% a year. I don’t know whether this particular tax cut is the most efficient at boosting population, but perhaps it is the most politically palatable.
But, as I pointed out in the letter, the loss of population is so small that it’s really equivalent to a rounding error with respect to overall population growth.