What gives Virginia and Maryland a right to tax outside income

[zotmeister]

Its so freakin simple.....the three areas DC/MD/VA all have agreed that depending on where you live you get taxed from that state/location. it doesn't matter that you work at another state or all three for that matter (one every four months!).

If its based what the OP is saying then, it would cause people to live in one state and work in another, just to get a tax break. Think about it.....wouldn't that make traffic even worse than it is in the area and housing pricess become rediculous high in one and low in another!

[juniperbleu]

Originally Posted by tech2enable

Maryland and Virginia deliberately make an agreement only for states that tax residents and non-residents, in the case of D.C taxing residents to let a one-sided agreement be in effect, because they can get away with that,.

Yet again, still not sure if I'm getting the problem. It's not exactly difficult, and I've never heard of someone making it an issue before this.

[rlchurch]

Originally Posted by juniperbleu

Yet again, still not sure if I'm getting the problem. It's not exactly difficult, and I've never heard of someone making it an issue before this.

If Congress didn't stop it, DC would tax people who work in DC based upon where the income was earned. It's an ongoing issue of DC's right to self govern, but it doesn't make the news often because everyone knows that Congress will block it if the City Council passes such an ordinance.

[FlyDrive100b]

Originally Posted by juniperbleu

Yet again, still not sure if I'm getting the problem. It's not exactly difficult, and I've never heard of someone making it an issue before this.

You can read more about it on the internet if you'd like, a D.C. non-resident tax would cost MD/VA billions of dollars, TN commuters will pay VA non-resident taxes, whereas VA commuters will not pay to TN, but pay to VA, MD/VA of course both have their buddy double taxation agreements to leech off d.c., its not just about D.C. inability to tax, its hypocrisy also

[dkf747]

Originally Posted by tech2enable

You can read more about it on the internet if you'd like, a D.C. non-resident tax would cost MD/VA billions of dollars, TN commuters will pay VA non-resident taxes, whereas VA commuters will not pay to TN, but pay to VA, MD/VA of course both have their buddy double taxation agreements to leech off d.c., its not just about D.C. inability to tax, its hypocrisy also

Why not give us a link to a site or two that explains it all?

[terrence81]

Originally Posted by tech2enable

You can read more about it on the internet if you'd like, a D.C. non-resident tax would cost MD/VA billions of dollars, TN commuters will pay VA non-resident taxes, whereas VA commuters will not pay to TN, but pay to VA, MD/VA of course both have their buddy double taxation agreements to leech off d.c., its not just about D.C. inability to tax, its hypocrisy also

Oh come on now. Who is leeching. So you're saying that the District should start taxing Virginia residents that work in DC? Why? If I work in DC why should my taxes go towards them? By living in Virginia aren't I costing my state more money than the District? Or vice versa if I get a house in Logan Circle but still work in VA why should my taxes go towards the commonwealth when I use more services in DC?

[FlyDrive100b]

Originally Posted by dkf747

Why not give us a link to a site or two that explains it all?

There is a link to D.C.'s original failed lawsuit

DC Appleseed Center

Note, the part that a commuter tax would redirect money from MD and virginia,the article is a bit old, so today the amount would probably be a few billion dollars.

Note, TN people who work in Virginia pay VA tax, but VA people pay no tax to TN, hypocritical, because the residents in VA who commuter to TN would pay VA tax.

[dkf747]

^ Thanks for that. I knew about that. I have no opposition to a commuter tax.

[holden125]

Originally Posted by rlchurch

In this area, you pay taxes based upon where you live. That's MD and VA picking on the District.

In most other areas you pay taxes based upon where you work. If you work in NYC but live in CT, you pay NYC tax on the income.

Sorry to revive this, but I was looking for some info and came across this.

After years of working in NYC I have one correction.

If you work and live in the City of New York, you pay income tax to both NY state and NY city.

But if you work in NYC but live outside the city limits, you pay only NYS income tax (b/c the income is earned in NYS); you don't pay city income tax anymore. They eliminated it for "commuters" in 2003 or so.

So you do pay taxes to the state where you work, but if you live outside New York State you also have to file where you live and get a credit for tax paid to NYS. Since the NYS tax rate is higher than NJ or CT, you'll pay your state of residence nothing. You'll get a total free ride on NYC income tax, which is similar to not having to pay income tax to DC if you work there but live in VA.

My personal view is that people who take advantage of job opportunities that exist in places like DC and NYC should pay income tax, of some sort, to those localities. It's not fair to put a heavier burden on residents and allow others to move to the suburbs and avoid supporting DC or NYC while still reaping the benefits of the millions of jobs available only in those cities. This is how it works for NYS, and how it works for Massachusetts (which taxes NH residents who work in MA). It only doesn't happen in DC b/c of DC's peculiar constitutional status of not being a state.