Lunding v. New York Tax Appeals Tribunal, 522 U.S. 287, 38 (1998)

Page:   Index   Previous  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  Next

324

LUNDING v. NEW YORK TAX APPEALS TRIBUNAL

Ginsburg, J., dissenting

With rare exception, however, lower courts have applied Shaffer and Travis with equal force to both personal and business deductions. The New York court's decision in Goodwin v. State Tax Comm'n, 286 App. Div. 694, 702, 146 N. Y. S. 2d 172, 180 (3d Dept. 1955), aff'd mem., 1 N. Y. 2d 680, 133 N. E. 2d 711, appeal dism'd for want of a substantial federal question, 352 U. S. 805 (1956), exemplifies this approach. Goodwin concerned a lawyer who resided in New Jersey and practiced law in New York City. In his New York income tax return, he claimed and was allowed deductions for bar association dues, subscriptions to legal periodicals, entertainment and car expenses, and certain charitable contributions. But he was disallowed deductions for real estate taxes and mortgage interest on his New Jersey home, medical expenses, and life insurance premiums. Goodwin, 286 App. Div., at 695, 146 N. Y. S. 2d, at 174. Upholding the disallowances, the appeals court explained that the non-income-producing personal expenses at issue were of a kind properly referred to the law and policy of the State of the taxpayer's residence. That State, if it had an income tax, might well have allowed the deductions, but the New York court did not think judgment in the matter should be shouldered by a sister State. Id., at 701, 146 N. Y. S. 2d, at 180.

Goodwin further reasoned that a State may accord certain deductions "[i]n the exercise of its general governmental power to advance the welfare of its residents." Ibid. But it does not inevitably follow that the State must "extend similar aid or encouragement to the residents of other states." Ibid. A State need not, in short, underwrite the social policy of the Nation. Cf. Martinez v. Bynum, 461 U. S. 321, 328 (1983) (State may provide free primary and secondary education to residents without extending the same benefit to nonresidents).

Other lower courts, upholding a variety of personal expense deductions for residents only, have agreed with Goodwin's analysis. Challenges to such rulings, like the appeal

Page:   Index   Previous  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  Next

Last modified: October 4, 2007