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Supreme Court: Maryland has been illegally double-taxing people who earn income in other states
Washington Post ^ | 05/18/2015 | Bill Turque

Posted on 05/18/2015 8:11:25 AM PDT by GIdget2004

A divided Supreme Court said Monday that Maryland’s income tax law is unconstitutional because it does not provide a full tax credit to residents for money earned outside the state, a ruling likely to cost Maryland counties and localities across the country millions of dollars in revenue.

The court voted 5-4 to affirm a 2013 Maryland Court of Appeals decision that the state’s practice of withholding a credit on the county segment of the state income tax violated the Commerce Clause because it might discourage individuals from doing business across state lines.

The ruling means that Maryland taxpayers who tried to claim the credit on their county income tax returns between 2006 and 2014 are likely to be eligible for refunds that the state Comptroller’s office says could total $200 million with interest. Going forward, residents who earn out-of-state income from certain businesses will be able to claim the county credit, costing Maryland an estimated $42 million a year in revenue.

In most states, income from outside is taxed both where the money is made and where taxpayers live. To guard against double taxation, states usually give residents a full credit for income taxes paid on out-of-state earnings.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Government; News/Current Events; US: Maryland
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To: GIdget2004

“The Wynnes and their attorneys contended that this represented about $25,000 in illegal double taxation.”

If the government was really for the people, this would
never happen. The fact is, liberalism has turned all of
the northeastern communist block into a governmental
criminal enterprise with the Obama administration as their
example guideline. I wonder if the Wynnes voted for the
Obama?


21 posted on 05/18/2015 8:26:56 AM PDT by Slambat
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To: G Larry

According to this article, there are several other states and municipalities that have similar laws, including Wisconsin and North Carolina.

http://www.usatoday.com/story/news/nation/2015/05/18/supreme-court-double-taxation/22066863/


22 posted on 05/18/2015 8:27:24 AM PDT by GIdget2004
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To: Mouton; All

Maybe you should read a little closer. Thomas and Scalia were part of the dissenting opinion. Along with Ginsburg and Kagan.


23 posted on 05/18/2015 8:29:31 AM PDT by bigdaddy45
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To: Organic Panic

“Funny how not be government considers people keeping their money as “costing” them something.”

It’s a symbiotic relationship. We are the host and they are
the parasite. We only exist to perpetuate a parasitical and
out of control government who’s addiction to power spites itself
in killing it’s host. Aka..liberalism.


24 posted on 05/18/2015 8:33:08 AM PDT by Slambat
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To: GIdget2004

Unlike the federal IRS which taxes money earned and taxed off shore should anyone be so foolish as to want to bring it home to America...


25 posted on 05/18/2015 8:35:05 AM PDT by null and void (In a world where lies and propaganda masquerade freely as truth, communication is everything.)
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To: GIdget2004

Escaping Minnesota winters is one thing; escaping Minnesota’s income tax rate is quite another. For those who don’t understand the rules, it’s relatively easy to unintentionally break the law.
If a person is present in the state for fewer than 183 days, Minnesota uses a set of 26 regulatory factors to determine whether he or she qualifies as a resident.

http://www.albertleatribune.com/2014/03/residency-laws-throw-snowbirds-for-a-loop/

We’re all criminals awaiting punishment.


26 posted on 05/18/2015 8:36:22 AM PDT by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
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To: The_Reader_David
Eritrea. But we really don't want to be in their company.

I had an Eritrean roommate. They are a wonderful people.

27 posted on 05/18/2015 8:37:16 AM PDT by null and void (In a world where lies and propaganda masquerade freely as truth, communication is everything.)
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To: null and void

People yes, at least the ones who aren’t running the place. The government seems to be playing a game of catch-up with North Korea in the competition for country most like a prison camp.


28 posted on 05/18/2015 8:43:13 AM PDT by The_Reader_David (And when they behead your own people in the wars which are to come, then you will know...)
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To: The_Reader_David

Yeah. Some day people will be saying the exact same thing about us. *sigh*


29 posted on 05/18/2015 8:45:17 AM PDT by null and void (In a world where lies and propaganda masquerade freely as truth, communication is everything.)
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To: GIdget2004; All
”… the state’s practice of withholding a credit on the county segment of the state income tax violated the Commerce Clause because it might discourage individuals from doing business across state lines."

Beware of split Supreme Court decisions.

I don’t see where a state discouraging its citizens from conducting business with other states is a violation of the Commerce Clause.

What am I overlooking?

30 posted on 05/18/2015 8:46:21 AM PDT by Amendment10
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To: Mouton

“Worse, a decision that should have been 9 to 0 is merely 5-4. The statists just barely lost one here but for them redemption is on the way as soon as one of the conservatives leaves the SC.”

The decision drew a mix of left and right leaning Justices.

“The 5-4 opinion was written by Justice Samuel Alito, who said the tax scheme forces some residents to pay income taxes to different jurisdictions. [Roberts, Kennedy, Breyer and Sotomayer joined in].

Dissents came from Justices Ruth Bader Ginsburg, Antonin Scalia, Clarence Thomas and Elena Kagan.”


31 posted on 05/18/2015 8:48:01 AM PDT by Steven Scharf
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To: GIdget2004

Maryland is a money grubbing whore, run by money grubbing whores.

Back in 2006 we sold our home in Florida and traveled for a couple of months until we found a state & town we liked and bought a home.

During those 2 months I had our mail forwarded to my brother in Germantown & he shipped it to us once a week or so.

Yeah, a year or two later the Peoples Republic of Maryland sent me a letter demanding state income tax for the year of 2006. They didn’t get it.


32 posted on 05/18/2015 8:49:47 AM PDT by ChildOfThe60s (If you can remember the 60s, you weren't really there....)
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To: GIdget2004


Guess that scuppers our plan to tax all foreigners living abroad...


33 posted on 05/18/2015 8:51:54 AM PDT by Buckeye McFrog
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To: Blood of Tyrants

“The federal government claims that it can tax individuals who earn their income outside the country. What is the difference?”

You get a dollar-for-dollar credit for taxes from the other country.


34 posted on 05/18/2015 8:57:40 AM PDT by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem)
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To: Steven Scharf

Kind of an interesting split.


35 posted on 05/18/2015 8:58:22 AM PDT by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem)
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To: G Larry

Maine will not only withhold from the pay of someone who lives in NH and works in ME but will withhold from their spouse as well.

Never could figure that one out


36 posted on 05/18/2015 9:00:20 AM PDT by Cowman
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To: GIdget2004

It’s 5-4, but an odd alliance of justices.

The 5 joining the opinion are Alito, Roberts, Sotomayor, Kennedy, Beyer. The 4 dissenters are Scalia, Thomas, Ginsburg and Kagan.


37 posted on 05/18/2015 9:10:45 AM PDT by Republican Wildcat
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To: ChildOfThe60s
During those 2 months I had our mail forwarded to my brother in Germantown & he shipped it to us once a week or so.

Yeah, a year or two later the Peoples Republic of Maryland sent me a letter demanding state income tax for the year of 2006. They didn’t get it.

Good for you. Most people need to realize that not only is the Federal government turning more tyrannical, but almost all states and local governments are becoming just as tyrannical in their efforts to bleed the productive class.

Government at all levels is increasingly being filled with parasitic sadistic humans who spend their days dreaming up ways to punish and steal from those who truly "earn" their money.

The parasite class is wholly evil.

38 posted on 05/18/2015 9:29:02 AM PDT by sand88 (We can never legislate our way back to Liberty)
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To: GIdget2004

Scalia and Thomas found against this?


39 posted on 05/18/2015 10:32:04 AM PDT by nickcarraway
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To: Fido969

Good.

Not really. It is hard enough to be a Republican Governor in Maryland and now this will make it even harder for him to be able to fix Maryland and possibly jeopardize the reelection in 2018.


40 posted on 05/18/2015 10:57:15 AM PDT by napscoordinator (Walker for President 2016. The only candidate with actual real RESULTS!!!!! The rest...talkers!)
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