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U.S. Supreme Court Strikes Down Maryland’s Income Tax System

Trust & Estates
By Hamish Hume

On May 26, 2015, in Comptroller v. Wynne, the U.S. Supreme Court held that the State of Maryland’s refusal to give credit for income taxes paid to other states violated the Dormant Commerce Clause.  The Court held that Maryland’s tax system failed the “internal consistency” test because Maryland imposed an income tax on all of the income earned by its residents regardless of source and without giving a full tax credit for taxes paid to other jurisdictions on out-of-state income, while also taxing income earned by non-residents within Maryland.  Hamish Hume, a partner at Boies, Schiller & Flexner in Washington, D.C., analyzes the decision and addresses a number of controversial issues that divided the Justices 5-4, and that may lead to future litigation.

Related Lawyer: Hamish P. M. Hume

Related Practice: Tax

External Link: Click here for full article...

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