Supreme Court strikes down MD law that double-taxes income

[dbackjon]

The Supreme Court on Monday struck down as unconstitutional a Maryland tax that has the effect of double-taxing income residents earn in other states.

Maryland officials say the 5-4 ruling means the loss of hundreds of millions of dollars in tax revenues. It also could affect similar tax laws in nearly 5,000 local jurisdictions in other states, including New York, Indiana, Pennsylvania and Ohio.

The justices agreed with a lower court that the tax is invalid because it discourages Maryland residents from earning money outside the state.

The unusual split wasn't along ideological lines. Writing for the court, Justice Samuel Alito said the tax "is inherently discriminatory" under the Constitution's Commerce Clause. The court has interpreted that provision to ban states from passing laws that burden interstate commerce.

Alito was joined by Chief Justice John Roberts and Justices Anthony Kennedy, Stephen Breyer and Sonia Sotomayor.
http://www.newser.com/article/e1b04bc9a ... tates.html" onclick="window.open(this.href);return false;

[93henfan]

Fuck! Does this mean the Bay Bridge toll cut is off? That's all that really matters.

[dbackjon]

Fuck! Does this mean the Bay Bridge toll cut is off? That's all that really matters.

Probably

[93henfan]

Fuck! Does this mean the Bay Bridge toll cut is off? That's all that really matters.

Probably

This is fucking bullshit!!!.

[Ivytalk]

Interesting ideological divide on this one! Breyer and Sotomayor voted with Roberts and Alito, with Scalia and Thomas on the other side.

Up yours, O'Malley!

[travelinman67]

A long overdue decision.

Writing payroll tax table software to factor reciprocity was one of my principal headaches back in the day.

I was very surprised double-taxation hadn't been constitutionally challenged years ago. This decision will piss off a lot of local/regional governments, but was the right decision.

[GannonFan]

A long overdue decision.

Writing payroll tax table software to factor reciprocity was one of my principal headaches back in the day.

I was very surprised double-taxation hadn't been constitutionally challenged years ago. This decision will piss off a lot of local/regional governments, but was the right decision.

It wasn't the best link in terms of information, but the ruling doesn't seem to prevent double taxation. It merely seems to prevent "pick and choose" double taxation. Maryland was fine with reciprocity for some states and municipalities, but in some cases they said no to reciprocity from others. Double taxation would still seem to be fine, just have to be consistent with it.

[89Hen]

Setting aside the legality of this, I'm not sure how I feel about this in theory. Do I want people living in Maryland and earning all their income (and paying tax) in another state? Why is that good for Maryland?

[93henfan]

Setting aside the legality of this, I'm not sure how I feel about this in theory. Do I want people living in Maryland and earning all their income (and paying tax) in another state? Why is that good for Maryland?

How about people who work in Maryland, live in Maryland, and pay Delaware taxes? I may or may not know somebody who did that.

[Baldy]

Setting aside the legality of this, I'm not sure how I feel about this in theory. Do I want people living in Maryland and earning all their income (and paying tax) in another state? Why is that good for Maryland?

How about people who work in Maryland, live in Maryland, and pay Delaware taxes? I may or may not know somebody who did that.

You people have got some fucked up tax structures.

[93henfan]

How about people who work in Maryland, live in Maryland, and pay Delaware taxes? I may or may not know somebody who did that.

You people have got some fucked up tax structures.

Well, I, er I mean, this person was a Delaware resident the whole time.

[mainejeff]

Interesting ideological divide on this one! Breyer and Sotomayor voted with Roberts and Alito, with Scalia and Thomas on the other side.

Effing Thomas.......must have foreseen declining revenues for his jobless "brothas".

[Baldy]

Setting aside the legality of this, I'm not sure how I feel about this in theory. Do I want people living in Maryland and earning all their income (and paying tax) in another state? Why is that good for Maryland?

Not sure how Maryland works (not sure I want to either), but in most states you pay income tax in the state you reside, not in the state you work. In a normal world, a Delaware resident who works in Maryland would only pay tax to Delaware. If your Maryland employer withheld, all you would have to do is file a non-resident return and get everything which was withheld, back. A "good" employer wouldn't withhold for Maryland in the first place, but would instead withhold on your behalf for Delaware.

[Baldy]

Interesting ideological divide on this one! Breyer and Sotomayor voted with Roberts and Alito, with Scalia and Thomas on the other side.

Effing Thomas.......must have foreseen declining revenues for his jobless "brothas".

Rayciss...

[89Hen]

Setting aside the legality of this, I'm not sure how I feel about this in theory. Do I want people living in Maryland and earning all their income (and paying tax) in another state? Why is that good for Maryland?

Not sure how Maryland works (not sure I want to either), but in most states you pay income tax in the state you reside, not in the state you work. In a normal world, a Delaware resident who works in Maryland would only pay tax to Delaware. If your Maryland employer withheld, all you would have to do is file a non-resident return and get everything which was withheld, back. A "good" employer wouldn't withhold for Maryland in the first place, but would instead withhold on your behalf for Delaware.

This isn't your regular W-2 type employees that are in question. MANY people around here work in a different state (why our traffic sucks), and pay their taxes to the state in which they reside. This is more about a person who owns a business in another state and pays all their taxes to that state.