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Congress Trying To Stop Pointless Telecommuting Tax
from the recognizing-the-times dept
Thanks to the internet and other new technologies, it's clear that telecommuting can make a lot more sense for both employers and employees these days. While it doesn't make sense in all cases, the flexibility that telecommuting allows could really help out the economy in a lot of ways. That's why it was disappointing last year when the Supreme Court refused to hear the case of a Tennessee resident who was being forced to pay New York State taxes because his employer was in New York. He was willing to pay taxes for the amount of time he actually worked in New York, but the state claimed that he wouldn't have the job if it weren't for New York, and therefore he needed to pay up. Obviously, that could lead to some very tricky situations for both telecommuting workers and the employers that hire them -- and could likely lead to having the same income subject to taxes in multiple states. It's a blatant grab for money, at the expense of encouraging telecommuting. It appears Congress is now trying to fix the situation with a proposed law that would prevent states from taxing non-residents who telecommute. It seems like a reasonable solution, but such laws have been proposed in the past and never went anywhere. Hopefully, the attention paid to last year's case will help get this bill moved forward.
Reader Comments
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Income tax
Tennessee has an income tax. Usually, when one pays a tax such as that demanded by New York, the amount paid is deducted by the resident's home state from his tax. In this case, I suspect that New York's aggregate rate is more than Tennessee's, so Tennessee would net nothing, zero, zilch. I wonder if Tennessee was involved in this case? It clearly has an interest ...
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Re: Income tax
So when did TN enact an income tax?
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Re: Income tax
You are incorrect. Tennessee has NO income tax. I have lived in TN my entire life, and believe me, there is no personal income tax. The "Hall" Income Tax applies only to dividends and investment interest on certain bonds, etc...
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Why did we go offshore
This is just another reason every one who can is going offshore. This is insane tax policy. The NY company can easily solve the problem for the telecommuters; incoporate in Anguilla and pay employees from there.
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Re: Why did we go offshore
Actually no....As long as the company has a taxable nexus to NY, then the state can and will impose a tax on them and their employees.
Think about all of the companies that are incorporated in Delaware, but do business in the other states. They still have to pay taxes.
Off shore incorporation is generally used to avoid US taxes on international profits.
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So, when did TN enact an income tax?
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Re: When did TN enact an income tax
They did that in 1929...what's your point?
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Re: Re: When did TN enact an income tax
Tennessee does not have an "income tax" as most people know it. the Tenn Income tax that the previous poster, referenced was enacted in 29' and applies to interest from bonds and equities, and loans. not from Earned income via an occupation.
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That’s why we should do away with taxes and gain all income by conquering other nations... world conquest is very profitable these days.
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Let's eliminate income tax entirely
All of these questions would be so much easier and cheaper to resolve if we were to just eliminate income taxes and go to sales taxes. Jump on the wagon! Visit http://fairtax.org.
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Re: Let's eliminate income tax entirely
How would this be fair to all the rich people buying $20 million homes and $8 million dollar boats?
Have you no heart, can you not feel the plight of the Wall St. exec who only has a 60' yacht moored next to all the 80' ones?
The rich and powerful will never let that happen.....
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Re: Let's eliminate income tax entirely
"all of these questions would be so much easier and cheaper to resolve if we were to just eliminate income taxes and go to sales taxes"
Right on Ian!
We'd no longer have to spend time filling out tax forms, we'd collect taxes on all of the illegals out there, and all of our products would become cheaper since the personal and corporate income taxes wouldn't be embedded in the cost of stuff.
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