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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No. I was born in DC, but grew up in moco. It’s been in decline for at least 20 years. Md is very pro poor people and con business. It’s not sustainable. [/quote]

High taxes with a shrinking tax base to pay it[/quote]

I think Maryland should make VA people pay tax for income earned in MD. A large part of my company live in VA but work in MD and pay no taxes to MD and use our roads and services. Problem solved  [/quote]

Typical Marylander:  "There's a tax out there to solve every problem."

BTW -- the states have reciprocity.  MD residents who work in VA don't pay taxes to VA.[/quote]

It is not true Reciprocity. If it was it would be an equal exchange. VA residents should get a 100% of the MD tax rate and get to take that off their VA taxes. VA has a lower tax rate so they are avoiding taxes in this deal. I lived in NY when I worked in MD my first year. I paid full MD taxes on income earned in MD. I filed a NYS Resident return and a MD non resident return. I got a credit on my NYS return for tax paid in MD. MD got its fair share of my income tax.

Now that I live in MD if I work in VA I still pay full MD taxes. Why would MD or DC for this matter agree to this. In NYC they have the deal between NY and NJ for Reciprocity. But with roughly same tax rates it is different. VA has a wildly different tax rate than MD or DC so why did MD and DC cut them in. DC loses a fortune in this arrangement      [/quote]

You're very wrong on this.  Maryland has a higher income tax but for a non-resident that simply would not be the case.  Remember that a large portion of the Maryland income tax is a county income tax collected by the state.  The state income tax maxes out at 5.75% and you have to make more than 250k single or 300k married to hit that level of taxation.  In Virginia, the state income tax also maxes at 5.75% but it hits that level at a much lower income level.  Since Virginia residents wouldn't be paying income tax to any county in Maryland, the state loses nothing.
These links show the state income tax level.  County tax in Maryland for MoCo is another 3.2% on top of it but it's based on the county you live and not where you work.  Non-residents living in Virginia would not pay this.
https://www.individual.tax.virginia.gov/calculators/income-tax-calculator.cfm
https://taxes.marylandtaxes.gov/Individual_Taxes/Individual_Tax_Types/Income_Tax/Tax_Information/Tax_Rates/default.shtml[/quote]

There are more people who live in Maryland and work in VA, than those that do the reverse. Based on most recent census data in 2009-2013 time frame, approximately 68,500 people who lived in Virginia work in Maryland. Conversely, approximately 122,700 people who lived in Maryland work in Virginia. You guys can download and look at the raw data yourself:

https://www.census.gov/data/tables/time-series/demo/commuting/commuting-flows.html

It's very clear that VA does a better job at providing people with, err, jobs, than Maryland. [/quote]

Right but the point is, Maryland would not actually generate any additional tax revenue if they got rid of the reciprocal tax agreement because both states have the same maximum income tax.  Since more people from Maryland work in Virginia than the other way around, it would actually harm Maryland taxpayers since they would all be paying the max income tax rate while their income in Maryland would not necessarily hit that rate.[/quote]

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