By Dan Ferris in the S&A Digest:

We wrote it, and it's happening...

I can tell you judging from history and the recent experiences of several different countries, when society expects 40% of the tax burden to be carried by only 1% of the population, bad things happen. The masses always demand too many services from the government - because they're not paying for them. And, eventually, the 1% that's paying leaves, quits working, or hides their income. - Porter Stansberry in the May 8, 2009, S&A Digest

One year after Maryland - Stansberry & Associates' home base - became one of the first states to create a higher tax bracket for millionaires, the millionaires are disappearing. Taxes collected from those in the top bracket fell by about $100 million. The number of Marylanders with more than $1 million in taxable income who filed by the end of April fell by one-third to around 2,000... a "substantial decline" according to the state's comptroller.

The article says the recession is one obvious reason for the decline in taxable income. But it also acknowledges what we've been saying for months... you can't levy absurd taxes upon the rich because they will get fed up and leave.

Crux note: Dan Ferris is the editor of Extreme Value. To gain access to his World Dominator portfolio, click here...

More Atlas Shrugged across America:

Atlas Shrugged sales are skyrocketing...

Atlas Shrugged begins... New York turns on the rich

Atlas Shrugged begins, Part II... New York taxes bite deeper and deeper

Atlas Shrugged strikes California: State bleeding productive tax payers and drawing-in tax receivers