Supreme Court Agrees to Hear Maryland Tax Case
The US Supreme Court has agreed to hear a Maryland tax dispute that Maryland’s appellate court had ruled in favor of tax payers. The dispute centers around the fact that in some circumstances Maryland imposes a double tax on incomes for which taxes are already paid in other states. The specific case was filed by Brian and Karen Wynne.
They have a business that enables them to earn income across states. However, Maryland tax authorities asked them to pay a tax on income earned outside the state. This is because while Maryland too does not impose a double tax on revenues collected for use by the state, it does so for taxes collected on behalf of the counties.
This is another example of the greed of the government. They are receiving plenty of money every month but they still manage to waste that and then beg for more.
In this case, while the Wynne tax lawyers argued that it was unfair and unconstitutional for their clients to be expected to pay taxes twice on the same income, the attorneys for the state of Maryland argued that it was unfair for some residents to benefit from the services provided by the counties without paying the local taxes. The Maryland appellate court had ruled the double taxation unconstitutional but the Supreme Court has now agreed to hear the case. As such the appellate court has stayed its order.
However, the Maryland tax authorities have already received many applications for a tax refund. The case will have repercussions across the country in states where the county taxes are not eligible for a tax credit.
Across the country, individual tax payers and businesses often find that their understanding of the tax laws and the interpretation provided by the tax authorities differs. When this happens, you need to retain the services of an experienced tax attorney who can help argue your case in court and ensure that your interpretation of the tax laws are heard and understood.
Whether you run a business or are an individual, you need to ensure that you minimize your taxes. This can be done by proper tax planning including restructuring of investments to take advantage of the tax breaks offered by various state and local governments. However, sometimes, even after you plan your investments with care and restructure your business in order to benefit from tax incentives and exemptions, you are likely to find that there are disputes with the tax collectors. In such cases, the tax attorney you consulted when planning your taxes and restructuring can help present your case to the tax authorities and the court.
What is essential (law enforcement, military, and fire)?
As a rule, the IRS and the state and local governments all want to increase tax compliance as they need additional revenues to provide essential services. But so many people know this is goofy talk because taxes have never been higher, there are less ways to hide your earnings now, bureaucrats are paid lavishly, Americans see billions of money sent to Egypt and Pakistan in the form of weapons, bureaucrats in some departments even make videos on how much they waste tax payer money, federal salaries in DC have never been higher, and so on.
However and furthermore, businesses and individuals would like to minimize their effective tax rate in order to generate a surplus for further investments and expansions. In order to do this while complying with the tax laws, you need to consult with a tax lawyer who can help you plan your investments to meet your long term goals even as you pay lower taxes.