Do you earn any money outside your state? Whether you’re an NBA player or a lowly lecturer-consultant like some of us, you know the drill: Pay income tax where you earned the money, then get a credit from your home state when you file your return.
Unless, that is, you live in Maryland. Maryland refuses to credit residents for part of the money they earn elsewhere, choosing instead to double-tax them. The U.S. Supreme Court now has to decide whether this is constitutional. Depending on the outcome, copycats probably won’t be far behind.
The key to the case being argued today, which goes under the banal-sounding name of Comptroller v. Wynne, is a constitutional doctrine that has struck fear in the hearts of generations of law students. It’s called thedormant commerce clause, not because it puts you to sleep but because it regulates something different from and, in a sense, more passive than ordinary commerce clause jurisprudence.
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If you are being taxed in a state where you have no representative, that is taxation without representation. A liberal dream.
ReplyDeleteTo follow up on 9:52, you can only vote in one location - that is the basis for your representation.
ReplyDeleteYou can work, own property, and live in many places - that is the basis for your taxation.
Hopefully, SCOTUS will uphold one of the principles this country was founded on...no taxation without representation - and require states where you can't vote must return taxes collected...while allowing your voting eligible state to continue taxing you!
This may lead to folks having residences in non-income-tax states with appropriate representation of elected officials!
If they followed that basis for taxation DC would be tax free.
ReplyDelete