The Tax Foundation

April 10, 2005

Connecticut Post -- 'Caught in a Tax-Code Border War'

"Bill Ahern, communications director for the Washington, D.C.-based research group The Tax Foundation, said there are a number of ways that states that share a common labor pool can resolve a situation like this. For example, according to Ahern, Virginia and Maryland have an agreement to only levy taxes on their own residents. But Ahern said that Virginia and Maryland exchange almost an equal number of workers on a daily basis, so it's unlikely that one state would lose much in revenue. In the case of Connecticut and New York, he said, an agreement like this might decrease New York's revenues and increase Connecticut's disproportionately, because more Connecticut residents work in New York than vice versa."

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