Convenience Of The Hungry Tax Collector
Tax competition among the states is nothing new, but this year’s pandemic pressures have triggered a barroom brawl that the Supreme Court may have to quell – whether it wants to or not.
An aggressive move by Massachusetts to protect its revenue is the horse that may drag reluctant justices into this fight. The Bay State ordinarily collects considerable income tax from individuals who live in neighboring jurisdictions but who work in Massachusetts. Most of this revenue is generated in metropolitan Boston, which draws commuters from New Hampshire, Rhode Island and even Connecticut. There are also individuals who live in Vermont and New York but work in Massachusetts, mainly in the western part of the state.