What gives the state of MD a right to tax income earned out of state (income tax, live)
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Okay both Maryland and Virginia are allowed to tax non-residents who work in their states, if I work in VA and live in MD and vice versa, however they deliberately opt not to do so and have a tax agreement of sort, in the case of D.C. non-residents are not taxed by D.C. at all, so there is no need for an agreement by Virginia and Maryland although residents are taxed, if D.C was able to tax non-residents just like MD,VA are , MD,VA would probably credit the taxes paid to D.C and it would put D.C on a more equal footing, instead MD and VA only give you tax credit for states that levy income taxes, including pennsylvania and other states in which taxes are levied by the home state, is deliberately orchestrated.
I am wondering though, what gives the constitutional right to collect a resident's out of state income
From MD 2008 Non-Resident form instructions: (http://forms.marylandtaxes.com/current_forms/nonresident_booklet.pdf - broken link)
Quote:
IF YOU ARE A NONRESIDENT, YOU ARE NOT
REQUIRED TO FILE A MARYLAND RETURN IF:
• your Maryland gross income is less than the
minimum filing level for your filing status, OR
• you had no income from Maryland sources,
OR
• you reside in the District of Columbia, Pennsylvania,
Virginia or West Virginia and had only
wages from Maryland. See Instruction 11 for
additional information.
From MD 2008 Non-Resident form instructions: (http://forms.marylandtaxes.com/current_forms/nonresident_booklet.pdf - broken link)
You are not required to pay MD tax but MD can still tax you but it OPTS NOT TO, they have double taxation agreements or credit taxes, in the case of Virgina is that way.
Not sure I understand what you mean by "tax credits". I have 2 employees that live in Pa. I withhold Pa. tax on them, NOT Md. tax.
Tax credits, meaning that MD to avoid double taxation credits the PA taxes against the MD taxes, or simply avoids taxing pa residents who work in MD.
Virgina is a better example of that, MD and VA have this let's join together, put aside our differences and beat up scenario on D.C , but lets make it appear not that way.
Okay both Maryland and Virginia are allowed to tax non-residents who work in their states, if I work in VA and live in MD and vice versa, however they deliberately opt not to do so and have a tax agreement of sort, in the case of D.C. non-residents are not taxed by D.C. at all, so there is no need for an agreement by Virginia and Maryland although residents are taxed, if D.C was able to tax non-residents just like MD,VA are , MD,VA would probably credit the taxes paid to D.C and it would put D.C on a more equal footing, instead MD and VA only give you tax credit for states that levy income taxes, including pennsylvania and other states in which taxes are levied by the home state, is deliberately orchestrated.
I am wondering though, what gives the constitutional right to collect a resident's out of state income
Probably legislative or precedent law which most laws are derived from. If the constitution doesn't forbade it then federalism prevails. Remember the Americans who are part of the Tea Party movement want the federal government to stop telling states how to run their states and that includes taxation. Think the 10th amendment to the constitution and you have your answer clear, clean and specific. http://www.personal.kent.edu/~rrobyn...%20Outline.htm
If you don't like it then go out and fight against those who want the federal government out of running their lives.
http://www.thenewamerican.com/usnews/constitution/881-tenth-amendment-movement-taking-on-the-feds (broken link)
We Americans are expected to play by the rules — to obey traffic regulations, pay taxes, observe zoning ordinances — in short, to abide by the law. If we don’t, we may find ourselves fined or even jailed. Our federal government is also expected to abide by rules — in its case, the Constitution of the United States. The Constitution specifies which powers the federal government may exercise, and forbids any others. The Tenth Amendment to the Constitution is explicit: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
Many of America’s Founding Fathers were concerned that if the federal government were too powerful, it would become tyrannical. For this reason, many checks and balances were put on the federal government’s power. One of these was that Washington should be restrained by the powers of the states, which would retain a high degree of sovereignty.
At least you live in a progressive state and area that is advocating for the protections and oversight of the states as you seem to want.
Probably legislative or precedent law which most laws are derived from. If the constitution doesn't forbade it then federalism prevails. Remember the Americans who are part of the Tea Party movement want the federal government to stop telling states how to run their states and that includes taxation. Think the 10th amendment to the constitution and you have your answer clear, clean and specific. http://www.personal.kent.edu/~rrobyn/Chap%2003%20Outline.htm
Actually, that may not be completely true, regarding state taxation of out of state income, I am not sure what the right is, but states cannot do what they want in taxation, there was an argument about this when the new york state legislature repealed its commuter tax for non-residents of the state, the court said that if the state did that even non-residents wouldn't have to pay.
If you don't like it then go out and fight against those who want the federal government out of running their lives.
Tenth Amendment Movement: Taking On the Feds (http://www.thenewamerican.com/usnews/constitution/881-tenth-amendment-movement-taking-on-the-feds - broken link)
We Americans are expected to play by the rules — to obey traffic regulations, pay taxes, observe zoning ordinances — in short, to abide by the law. If we don’t, we may find ourselves fined or even jailed. Our federal government is also expected to abide by rules — in its case, the Constitution of the United States. The Constitution specifies which powers the federal government may exercise, and forbids any others. The Tenth Amendment to the Constitution is explicit: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
The federal government has a lot of power and doesn't play by the rules at all, I do agree that citizens ought to follow rules though such as speeding and traffic and paying taxes , this is not the discussion here though.
Many of America’s Founding Fathers were concerned that if the federal government were too powerful, it would become tyrannical. For this reason, many checks and balances were put on the federal government’s power. One of these was that Washington should be restrained by the powers of the states, which would retain a high degree of sovereignty.
Many argue it has become tyrannical, I agree , but I am not that type of anti-government person that you often hear at the media, states governments can become tyrannical too, there is no much evidence that the federal government is restrained in this day and age.
At least you live in a progressive state and area that is advocating for the protections and oversight of the states as you seem to want.
The question is still unanswered, you are talking about a different topic altogether, I don't really have a particular view or opinion about income taxes because it can depend, the question I am posing is a question, because MD/VA do take billions from D.C. coffers.
The question is still unanswered, you are talking about a different topic altogether, I don't really have a particular view or opinion about income taxes because it can depend, the question I am posing is a question, because MD/VA do take billions from D.C. coffers.
I answered the question. The absence of it being specified along with the 10th amendment gives states the right. It isn't in the constitution and the 10th amendment gives those rights not specified to the states and not the federal government. You won't find it in the US constitution.
the question I am posing is a question, because MD/VA do take billions from D.C. coffers.
I think I'm beginning to get what you are saying. DC is not a state. Congress manages it, and they decided that this is how it is going to be. DC has no representation in congress (hence their license plate), so no protection on this issue. Citizens of DC who want representation currently have no choice but to move to a state that does have representation. The blame lies with Congress, not MD or VA who are just doing what Congress permits them to do. Does this answer your question?
I think I'm beginning to get what you are saying. DC is not a state. Congress manages it, and they decided that this is how it is going to be. DC has no representation in congress (hence their license plate), so no protection on this issue. Citizens of DC who want representation currently have no choice but to move to a state that does have representation. The blame lies with Congress, not MD or VA who are just doing what Congress permits them to do. Does this answer your question?
The question is not specific to maryland and virginia, but in this setup they are taking advantage of it, what gives a state a right to tax its residents outside income from another state
I answered the question. The absence of it being specified along with the 10th amendment gives states the right. It isn't in the constitution and the 10th amendment gives those rights not specified to the states and not the federal government. You won't find it in the US constitution.
You have not answered the question, if you have and believe you are right please be more specific and provide references.
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