Posted on 06/01/2014 6:39:57 AM PDT by SeekAndFind
Cash is still King.
Another issue is retirement and pension funds earned in one state , while you have residency in another state.
The 'legislative grace' that has been the norm in the recent past involves 'reciprocity' of non-taxation between the two states on pensions.
The SCOTUS resolution of the Wynne legal case could have much further ramifications on retirees , and people on fixed incomes.
Agreed , this case needs to watched .
Taxes should be applicable in the location in which the taxable item is earned/obtained. If your business does half of its business in two different states, then each state should only be able to tax on the stuff done within their borders. Any income tax would be just like property/sales tax: only applicable where the physical item/transaction occurs.
Would this affect the owner of an Amway business in CA since Amway is located in Michigan?
how about a long distance truck driver?
What matters is where the income is earned and where the earner lives. So in your scenario, if the earner lives in CA and the income is earned in MI, then yes. If the earner lives and earns in CA, then no.
IANAL and IA(definitely)NA(tax)L either.
“So the Wynnes lost the first two rounds in court, even though they were apparently taxed by the states where the income was generated and then taxed again in Maryland But they then amended their original request, asking the courts to answer the question, whether a state had the unconditional right to tax all income based on residency.”
In theory a state could do anything its constitution permits including charge a fee for just living there based upon what you have. That is called property tax but apparently Maryland also calls it income tax.
I have to side with states rights here. Maryland has every right to be an asshole state in which nobody with money or industry should live.
“No state has a right to tax the income of a non-resident. Even if they pass laws allowing it.”
I agree, but theses people are residence of Maryland, they own a house and live there. That was their first mistake. If you want to live in a den of thieves don’t be shocked when you get robed.
“Taxes should be applicable in the location in which the taxable item is earned/obtained. If your business does half of its business in two different states, then each state should only be able to tax on the stuff done within their borders. Any income tax would be just like property/sales tax: only applicable where the physical item/transaction occurs.”
I agree with that, although it would be rather complicated, but such is the concept of an income tax.
If an Income tax is on the individual then it can be only applied by the State and/or locality in which they live and only against that which they earn. This is in essence a “New” property taxes.
I just dont see how that is legal.””
You dont huh? Just wait until they Tax You for DIsagreeing with the New Tax.
what do tyrants care about the law???
RE: Taxes should be applicable in the location in which the taxable item is earned/obtained. If your business does half of its business in two different states, then each state should only be able to tax on the stuff done within their borders. Any income tax would be just like property/sales tax: only applicable where the physical item/transaction occurs.
I agree wholeheartedly with the above statement. Next question -— should it not also apply to individuals working and earning their salaries OVERSEAS?
Now that is an interesting question, as it is indeed double taxation, as its taxation at the instant of acquisition, and taxation at the location of residency.
I would require any government in law to clearly define whether their income/property tax apply to one or the other. If it apply’s to both then they should equally tax their own citizens on both.
But to otherwise Tax anther State’s citizen on one while taxing their own Citizens exclusively on other is a violation Privileges and Communities clause Article 4 section 2.
I suppose the error is in presuming the Taxing entity
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It happened to me.
I wasn’t even on a trip. My daughter simply made the charge in the local Dell Store in Nevada and NYS charged me sales tax. I called to complain and they said they had the right. I think they are making it up, but I got the bill, nonetheless.
New York has been known to visit shopping malls in Pennsylvania, write down the license plate numbers of NY visiting mall shoppers and then send them an estimated sales tax bill based on an estimate of what the tax people thought is an average purchase.
“
RE: Taxes should be applicable in the location in which the taxable item is earned/obtained. If your business does half of its business in two different states, then each state should only be able to tax on the stuff done within their borders. Any income tax would be just like property/sales tax: only applicable where the physical item/transaction occurs.
I agree wholeheartedly with the above statement. Next question - should it not also apply to individuals working and earning their salaries OVERSEAS?
“
It does apply to individuals working and earning their salaries over seas. the foreign government will tax you if you got income tax there. The fascist IRS just doesn’t know its own bounds there anymore than it knows its bounds anywhere else.
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