Supreme Court decision that ought to be as big as Kelo (Thomas Huckaby vs. New York State Division of Tax Appeals)
Yea, everyone is ranting about Judge Alito now, but a little known decision was handed down today, and it deserves as big a notice as Kelo v. New London (eminent domain free-for-all for local governments)
It’s not a big news story, in fact the first mention of the case I saw was in the Guardian, a UK media company, and then it was only a blurb (I think those supremes refused to hear the case, so New York is apparently still the winner). I can not currently find anything in Google News about “Thomas Huckaby” or “Huckaby v. New York”, which is kinda disturbing.
Doing a regular Google search, however, does bring up details on the case, because it has been appealed several times and thus has been in the news in the past.
From law.com:
Personally, I find the whole idea of income taxes as unjust and unconstitutional. If I owe a percentage of what I earn as income tax, then I’m a slave by whatever percentage that is to that state. However, the idea that the 16th amendment was not properly ratified was pretty much laughed out of court so I know we are on the hook for it. (Just for the record, taxes on unearned income, like interest and dividends, or taxes on corporate income would be OK by me.)
For example, if an employee works 80 percent of the time in his or her own state and 20 percent of the time in the employer’s state, 80 percent of his or her income is taxed by the home state and 20 percent is taxed by the employer’s home state.
New York, however, has different ideas on how to tax out-of-state residents.
In New York, if the employee works out of state for convenience rather than employer necessity, the state clams it is entitled to tax 100 percent of the income earned. Since some states, such as Connecticut, base their income tax on where the taxpayer lives rather than where the income is earned, that means some workers are subjected to double taxation on the same income.
Is there any chance at all that if he became unemployed he would be able to receive double unemployment?
To put this all in the Standard Mischief libertarian viewpoint, this is another great example of how corporations have more rights than those living, breathing, thingys. (You know, batteries. Oh wait, I mean citizens.)
Corporations, of course, can incorporate in Delaware, or move offshore to avoid taxes. Tom Huckaby chose to live in Tennessee, most likely, because of quality of life issues. By living in another state, he is gaining virtually nothing when New York keeps the streetlights burning, or removes the snow from the street, or hauls away the trash.
It would have been interesting to see how the supremes came down on this issue, except for the zero coverage so far by the mainstream media (and I’d like to have added the obligatory Wikipedia link, but that has failed me also today). Eventually some details ought to show up, and I’ll update this post.
Update 2005-11-01: The “Thomas Huckaby” search on Google news is beginning to bear fruit.
http://www.nashvillecitypaper.com/
The high court’s rejection of Thomas Huckaby’s case lets stand a New York Court of Appeals ruling in March that upheld that state’s policy of taxing telecommuters who don’t live in the state but work for companies there.
It doesn’t, however, indicated which of the supremes voted to let this case stand. I have to guess that at least five supremes voted to do that and I’d like to know which ones. New York state shouldn’t inherently have the power to tax across state borders.
Update 2005-11-03: Reading further, I’m beginning to understand how cases are chosen to be reviewed by the court. A speech by Rehnquist in 2001 explains everything pretty well. The chief justice and his clerks pick the cases to be reviewed. Any other justice can also add cases to the agenda. Cases that have not been selected by at least a single judge are rejected. Only four judges need to vote to be able to review the case and hear oral arguments. This is called the rule of four. Cases that don’t get the required four votes are rejected without comments and without a recorded vote.
I think that pretty much explains why this case is such a “non-issue”.




