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NFIB applauds the US Supreme Court’s decision to end Maryland’s double taxation law on income earned out of state.
Washington, D.C., May 18, 2015 – The National Federation of Independent Business (NFIB) said today the United State Supreme Court has made interstate commerce more affordable for business owners in Maryland by ruling the state’s personal income tax is unconstitutional.
“Maryland’s income tax law was a clear unconstitutional burden on interstate commerce,” NFIB Small Business Legal Center Executive Director Karen Harned said. “This undue tax penalized and increased costs for small businesses discouraging them from investing in other states.”
At issue in the case of Comptroller of the State of Maryland v Wynne was whether Maryland could tax a resident’s income that was earned and already taxed in another state without providing a full tax credit. A Maryland couple claimed the state violated their constitutional rights under the Commerce Clause when the income they earned elsewhere was taxed a second time by the state. Many states tax residents on the entirety of their income, but Maryland is the only state that does not offer a full credit. The couple, who conducted a significant amount of business in other states, argued that tax credits are constitutionally required under the Commerce Clause in order to avoid double taxation. Maryland argued that the state is entitled to collect a tax on all income of its residents no matter where it is earned.
“We are pleased the Supreme Court has allowed Maryland’s small businesses the opportunity to do business in other states at a fair cost,” Harned continued. “This will certainly help to grow small businesses adding to the success of the overall economy.”
For more information please visit www.NFIB.org
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#SCOTUS rules that #Maryland’s personal income tax is unconstitutional, #smallbiz cheers: http://t.co/2zYrNTPUfu
— NFIB (@NFIB) May 18, 2015
