Tuesday, some asshole with a blog noted how silly it is to worry that the rich will flee D.C. if their taxes are raised very slightly. What makes that argument all the more ridiculous is how small those increases–which passed!–will be (boldface mine):
The measure would raise the marginal tax rate to 9.25 percent for a single earner who makes between $250,000 and $500,000 per year. Currently, those who make between $60,000 and $350,000 annually are taxed at 8.5 percent, and those who make between $350,000 and a million dollars a year are taxed at 8.75 percent.
Those earning between $500,000 and $1 million dollars annually would see their marginal tax rate increase to 9.75 percent, and the top marginal tax rate for those earning more than a million dollars annually would grow from 8.95 percent to 10.75 percent.
That would translate to about $375 more in the yearly tax bill of someone earning $300,000, and $6,500 more in the tax bill of someone earning $1 million, according to tables circulated by the three council members.
Allen said that only about 5 percent of residents earn enough to meet the threshold to pay the higher taxes, whether they are single, married or head of household. “These tax increases will allow the District to bring thousands of residents out of homelessness,” he said. “It can remove some of the daily traumas those experiencing poverty endure.”
Someone who earned $1 million can handle losing 0.65% of their income. And again, wealthy people don’t leave because of minuscule tax increases: to the extent they are ‘forced out’, it’s because they don’t feel safe or aren’t getting the amenities (public and private) they want.
Much ado about nothing.