Supreme Court: Two states can’t tax the same income

taxBy Richard Wolf | USA TODAY

The Supreme Court came down against double taxation Monday in a case that could cost some states and cities millions of dollars.

The justices sided with taxpayers over governments in a case that tested Maryland’s income tax system, which does not grant a full credit to residents who also pay income taxes in states where they work. The state is among the few that collect some income taxes on residents who work out of state.

It was a difficult decision for the justices to reach, taking six months since oral arguments were held for the divided ruling to be issued. That’s because both Maryland and one of its residents, Brian Wynne, had good arguments.

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