A case New Hampshire filed with the US Supreme Court last October against the Commonwealth of Massachusetts could have a huge impact on state finances nationwide. It also raises the stakes as the Massachusetts Legislature considers amending the state constitution to eliminate the state’s prohibition against a graduated income tax and to hike taxes on high earners.
Here are the facts on the Supreme Court case. Last spring, in response to the coronavirus pandemic, Beacon Hill enacted a temporary emergency regulation subjecting nonresidents employed by Bay State companies to state income taxes even if their work is performed outside the Commonwealth. The regulation was later made permanent.
