I really hope New Hampshire wins because California will be all over this and impose their own taxes on employees who got out but still work for CA companies.
It’s a new type of “unitary tax.”
At one time (don’t know if its still true) Cali had a corporate tax which was based on all income, not just income earned in the state.
If I am living in New Hampshire and working remotely for a Massachusetts company, then how would MA have any knowledge of who I am and how much I owe in taxes?
ANSWER: Because my employer is located in Massachusetts and processes the payroll there.
These employers could get around this problem very easily by establishing a minimal corporate presence in New Hampshire and paying these employees through that separate entity.
There was something similar when the sinfully greedy governors such as Gretchen Whitmer in Michigan got into position to be able to tax the Michigan residents for Amazon and other online purchases to their homes in Michigan.
Remember, no one at that time was doing work & business in Michigan, had a MI address, or dealt within the state for any transaction. So what was the tax for? A person bought an item made in say, Iowa, and shipped from Ohio, but arrives at their home in Michigan. And now the courts ruled the state CAN tax with local sales tax. A shame.
There was a court delay about “having a presence within the state” that led to some token warehouses of Amazon to appear. Amazon also wanted to crush any lingering brick and mortar local small businesses, too.
This is good news. We need to encourage every state to be jealous of money and power possessed by other states and federal gov.
This moves the corruption/power to more local situations. Divide and conquer. Divide is only half the battle, don’t forget the conquer part.
When Democrats pack the Courts they’ll be able to tax people living in Red States...
You know, they have “sooooo much respect for the Constitution” and our laws... (except they’ll throw them all out to get their hands on cash that isn’t theirs...)
Words are cheap - actions matter...
Hi.
Methinks we don’t throw the tea into the harbor this time, but the politicians that suggest such tyranny.
5.56mm
Also could you vote in the the company’s home state Elections? You know no taxation without representation........
Ask the NFL players. They know all about this, as do company execs who travel for business meetings.
California has been going after employees working out of state and out of the US for over 40 years.
I had to prove to CA that I was living out of state and paying OR taxes every year that I worked for a CA company.
I heard one story of a Texan working for a CA company that annually ignored CA’s claims. State of CA put a lien on his property in TX.
who got out but still work for CA companies.
Report today that the CEOs of Exxon and Chevron discussed merger. Wonder if with that comes a move of the Chevron HQ from Ca to Texas.
Some years ago I worked as a W2 employee for a California company. The company did state withholding. When I left that company, I got letters saying that I hadn’t filed a return...and the notice went to my Nevada address. So I wrote a letter: “Where do I vote”? I got refund checks on the withheld monies from California. Quite a surprise.
Rule of thumb from someone who’s done this many times: you pay the higher of the two tax rates. There’s no getting around it.
I agree. California’s long tax arm for example, is taxation without representation imo.
In fact, if you are a resident of another state being taxed by California for example, then to my understanding, the 11th Amendment won’t let you sue California.
"11th Amendment: The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State."
Or maybe involuntary California taxpayers could put California, along unconstitutional federal taxes by Democrats and RINOs, in their places with prohibited involuntary servitude?
"13th Amendment, Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States [emphases added], or any place subject to their jurisdiction."
Or does the 11th Amendment need to be repealed?
Corrections, insights welcome.
Quick Chief Justice Roberts. Save the reputation of the Supreme Court once again by declining to hear the case.
I live in Georgia and worked remotely for a company in Massachusetts. I paid GA state tax not Massachusetts as they also had a presence in GA. I still work remotely now but as a contractor whose payroll is processed by a third party.
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