Posted on 12/18/2012 8:57:46 PM PST by Be Careful
One of the most fascinating characteristics of government borrowing - whether at the local, state, or federal level - is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it's customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality's estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.
(Excerpt) Read more at realclearmarkets.com ...
Gee, I didn’t know you had to check out of a state, before leaving.
NY can only do this for money earned in the state.
How about we eliminate the state income tax deduction and let people fair share the pain.
New York already wants you to pay taxes if you own property there, even if you don’t live in it.
New York already wants you to pay INCOME taxes if you own property there, even if you don’t live in it.
Welcome to the Hotel California.....
You can check-out any time you like, But you can never leave!
Illinois will be the first on this.
Time to air my pet peeve again.
I live in small town Illinois, a long ways from Murder City. My little town, population 1600 imposes a cell phone tax of 11¢ per phone, per month. I have 5 phones on my plan but one of them is my mother’s in Missouri, I have to pay the tax on her’s too. I can’t find anybody who can explain this to me. What I’ve been told in essence is we do it because we can.
Some of the people would be millionaires leaving, but most people would be out of work in the current state and moving to a new job. So they probably don’t have a lot of money to tax. If the state raised the bar for how much you had to make before you could leave, the unemployed would just stay where they are, collecting unemployment, which would not really help the state.
Not entirely true. My understanding is if a municipality goes bankrupt, a cloud will exist on title to all land within the boundaries and real estate prices will plummet. Then it becomes a matter of the State's title law as to how much time must pass before the encumbrance is cleared.
One should check the weather forecast first...
When will they follow East Germany and put up walls to stop escape?
here they have obscounded with a huge amt of state money, far beyond what private citizens could ever hope for, and they don't even get taxed on it....
they should start taxing them immediately....if you collect a state pension, no matter where you move, you'll be taxed on it....maybe even make the taxes higher on those that do move....that way, they'll keep more of their citizens in their state and not taking advantage of the rest of us...
Is it really true that if a mayor of a town declares the town bankrupt, the private property in that town is considered a debtor to the creditors?
I hope it doesn’t happen Friday. It’s payday.
I just woke up the household over that one! LOL!
I know NY and CA tried to collect taxes from retirees even though they lived in other states based on the premise that since you worked in those states and earned income there and deferred the income like in 401k’s and IRA’s, they are entitled to some of that income. Congress in 1995 banned that after the GOP takeover.
The big thing now is if you have to go work in a different state for any length of time, you have to pay income tax to that state in addition to your home state. One person I worked with spent a lot of time in Maryland and he had to do Colorado and a Maryland return. Of course the company didn’t even give any additional money to pay for the additional burden of Maryland taxes.
Only on the amount of money actually earned there. For example, if you make $2,000 per week, and spend half your time in Maryland, you pay Maryland taxes on $1,000 of income.
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