Social Studies
The nature of alimony is a central question in the Lunding debate. As illustrated above, in considering the constitutionality of state law disallowances of exemptions or deductions to nonresident individuals, the law had heretofore made distinctions among personal exemptions, personal expenses, in-state business expenses or losses, and out-of-state business expenses. Discrimination by disallowing personal exemptions translated into a different rate structure for nonresidents, and was forbidden. Discrimination by disallowing deductions of a "purely personal" nature was upheld, particularly where the expense was clearly related to a different state -- the chief example being Mr. Goodwin's interest and taxes on his New Jersey home. Business expenses and losses unrelated to in-state business or income likewise could properly be denied to nonresidents, as a necessary and reasonable correlation to the state's inability to tax the nonresidents' income and gains from other
