Telework Coalition Renews Its Call to Congress to Remove the Penalty Tax on Interstate Telecommuting
Group says abolishing the telecommuter tax can slow global warming, boost rural economies, benefit service disabled war veterans, and limit the devastating impact of future man-made or natural catastrophes
This legislation, which was introduced in the last session of Congress by Sen. Chris Dodd and House Rep. Christopher Shays, would eliminate a penalty tax that threatens Americans nationwide who work for employers outside their home state and sometimes telecommute.
Under New Yorks “convenience of the employer” rule, for example, nonresidents who sometimes telecommute to their New York employers may owe New York taxes, not only on the income they earn while working in New York, but also on the income they earn while teleworking from home, outside New York. Because the employees home state may also tax the income earned at home, the teleworker may be double taxed on that income.
The Telecommuter Tax Fairness Act would prohibit states from taxing nonresidents on the income they earn while working from home.
Washington, DC (PRWEB) February 2, 2007 — The Telework Coalition (TelCoa), a telework advocacy group headquartered in Washington, DC, is calling on Congress to re-introduce the Telecommuter Tax Fairness Act and pass it this year.
“By removing a steep financial disincentive to telework, this legislation would enable the country to maximize teleworks many benefits,” said Chuck Wilsker, TelCoas President and CEO. “For example, telework can slow global warming by reducing the number of cars on the road, bring new jobs to rural communities and expand employment opportunities for service disabled war veterans returning from Iraq and Afghanistan. It can also help the government keep running in the event of a terrorist attack, flu pandemic, hurricane or other emergency.”
Specifically, the Telecommuter Tax Fairness Act would abolish a state income tax rule known as the “convenience of the employer” rule, which is on the books in a number of states, and which New York has been especially aggressive in applying.
About the Telework Coalition:
Headquartered in Washington, DC, The Telework Coalition (www.TelCoa.org) is a not-for-profit 501(c)(6) that brings together a diverse array of organizations and individuals with the common interest of promoting awareness and adoption of existing and emerging telework and telecommuting applications. The coalitions mission is summed up in its tag line, “Enabling virtual, mobile and distributed work through research, education, technology and legislation.”
“Given the broad range of national priorities telework can help us achieve, we simply cannot afford to make it so expensive,” said Nicole Belson Goluboff, a lawyer on TelCoas Advisory Board. “This Congress must be the one to make it easier for Americans to get to work via the Web, and it can do that by passing The Telecommuter Tax Fairness Act.”
Contact:
Chuck Wilsker, TelCoa, President and CEO (202-266-0046, ext. 101)
Nicole Belson Goluboff, Esq. (914-725-8099)
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