Jim Hickey’s American Politics

Let's Get Real.

The Supreme Court Rules Against Double Taxation

A Maryland Taxpayer Said The State’s Income Tax System Is Double Taxation Because States Don’t Give Full Credit To Taxpayers That Pay Taxes In States Where They Work

Maryland and other states like New York, North Carolina and Wisconsin collect income taxes from residents that work in another state. The court’s ruling could mean big refunds for people that paid taxes in more than one state. The new ruling might cost Maryland as much as $200 million estimated Crystal Hunt. The fact that states can collect income tax in the first place has always been a thorn in many taxpayers side.

The tax system needs a complete overhaul not just on the state level, but on the federal level as well. In order to overhaul the tax system, Americans need representatives that can make hard political choices. But the group of lawmakers in Washington have demonstrated that they are not capable of making tough choices.

Some proponents of a new tax system say a consumption tax works better in a capitalistic society. Others tax experts think a straight percentage system would eliminate the complicated and unfair system that is currently in place.

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