CONGRESSMAN JIM HIMES

Representing the 4th District of Connecticut

Himes, Garrett introduce Multistate Worker Tax Fairness Act

April 15, 2016
Press Release

WASHINGTON, DC – Today, Representatives Jim Himes (CT-04) and Scott Garrett (NJ-05), Chairman of the Committee on Financial Services’ Subcommittee on Capital Markets and Government Sponsored Enterprises, introduced the Multistate Worker Tax Fairness Act. This bill will prevent the over-taxation of individuals who telework in one state for companies located in another.  Connecticut Senators Richard Blumenthal and Chris Murphy are introducing companion legislation in the Senate.

The number of Americans telecommuting and working from home at least part-time has increased with technological advancements. Unfortunately, a patchwork of conflicting state tax rules burdens workers and discourages telecommuting.

“If you wake up every morning in Connecticut, and walk downstairs to your home office in Connecticut, it only makes sense that you should be paying taxes to Connecticut, not to New York or whatever state your company’s headquarters happens to be in.” said Himes. “It’s the fairest, simplest way to avoid over-taxation and ensure tax revenue goes to the logical jurisdiction.”

“People who take advantage of technology and telecommuting shouldn’t be punished by outdated tax laws,” said Garrett. “It doesn’t make sense to pay taxes in a state that you never set foot in, and our legislation will bring the tax law into the modern age to protect New Jerseyans from being over-taxed.”

The Multistate Worker Tax Fairness Act establishes a uniform standard based on physical presence in a state. In doing so, the bill prohibits a state from taxing a nonresident’s income earned when the individual was not physically in that state.  Other cosponsors include Rosa DeLauro (CT-03), Elizabeth Esty (CT-05) and Chellie Pingree (ME-01).

The full bill can be found here.