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San Diego’s chronic structural budget deficit affliction

Response to #22 "Could you deduct those taxes from your federal taxes? How did the Ohio/Pa. tax work? Best, Don Bauder" I don't recall about deducting from federal tax but assume it is the same as any other state that has income taxes. These numbers may not be accurate but as an example the Ohio/Pa. tax agreement worked like this: Pa. established reciprocal taxing agreements with bordering states. Pa. had a personal income tax rate of 2.5%, Ohio's rate was 1%. The city where I lived in PA also had a 1% income tax rate, the city in Ohio where I worked did not have and income tax. My employer in Ohio deducted the 1% Ohio income tax from my wages and zero for local income tax. When filing state & local tax returns my W2 reflected the 1% paid to Ohio which I was then allowed to deduct from my Pa. tax owed. Pa. would then get 1.5% and Ohio retained their 1%. Since there was no local tax in the jurisdiction of my employment I owed the city of residence 1%. If I had lived in Ohio & worked in Pa. the opposite would occur. I would pay the 2.5% in Pa. where I worked and get a credit on filing the Ohio state tax of 1%. I don't see an issue with the lack of representation with this scenario any more than there is with the TOT. Typically you pay income taxes in the state where you work, I believe there was a discussion some time back about the state getting taxes from pro football players for games played in Ca. when they lived elsewhere.
— April 15, 2010 9:02 a.m.

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