In 2008 the Maryland legislature passed a tax on millionaires with the belief that individuals who earn more than $1 million per year were not paying their fair share of taxes and could easily afford to pay more money to the state government.

Last year the state comptrollers office said that based on tax returns files through the end of April the number of returns filed by Marylanders with more than $1 million in taxable income dropped by a third to 2,000 and that tax receipts from that group were down $100 million.

That information was just reinforced by a report by Montgomery County that showed a 27% decline in millionaire tax returns filed in 2007-2008 in the county which is the wealthiest county in the state.

While most liberals scoff at the idea that the tax has been a factor in the sharp decline in tax returns filed by these wealthy individuals Montgomery County Executive Ike Leggett speculated that people who own homes in other states are now establishing residency elsewhere which has contributed to the tax revenue decline.

Maryland legislators badly miscalculated that targeting the wealthy would only have a positive effect on revenue and that despite the recession taxpayers would stay put because they are so in love with Maryland.

Yet despite the dramatic loss in tax revenue the legislature is poised on extend the tax when it expires this year.

They apparently think nothing of chasing away the very tax base that provides the money to fund their projects.

And you wonder why they can’t balance the budget?

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