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 ...
The federal government claims that it can tax individuals who earn their income outside the country. What is the difference?
Does Maryland HAVE ..$200 million??
whatever is to become of Baltimore NOW?....
Good.
The Marxistland left is likely livid over this. (And more broke.)
Funny how not be government considers people keeping their money as “costing” them something.
The US is the only country in the world to tax it’s non-resident citizens.
“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. “
Holy, that’s a lot for refunds and it was a stupid law anyways.
The difference is that the IRS will allow a credit against you US tax liability for tax paid on income in the second country. Maryland was not allowing a similar credit.
“whatever is to become of Baltimore NOW?....”
i thought it was completely burned down by the Trayvons. It’s still standing?
The difference is IF you earned less than $50K for the year and the foreign bank where your money is located is NOT registered with FATCA. If not, Uncle Sam needs thicker glasses to look for it..
Worse, a decision that should have been 9 to 0 is merely 5-4. The statists just barely lost one here but for them redemption is on the way as soon as one of the conservatives leaves the SC.
The 200 million due to be paid back to the taxpayers who been double whammied..was probably eartmarked for “rebuilding” Balitmore.
Thats okay that city will just hit up ole Unca Sam..again
It is not costing Maryland. They were not entitled to it in the first place.
The US taxes US citizens who work abroad! On top of foreign taxes to boot. And even if you renounce your citizenship, the IRS will still come after you.
With any luck this will apply to California as well.
Not quite. Eritrea. But we really don't want to be in their company.
,,,,,, please send in the contras to rescue Marylander’s from these ultra-liberal radical , election rigging , commie b@$+@rd$ who have taken over our state and run it deep into the ground . Check out the Maryland debt clock ,,, $48 billion bucks in debt left by Martin O’Malley and his rad-regime .
The knives are out for O’Malley.
Wonder who planted this story?
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