Rep. Johnson introduces Tax Fairness, Simplification Act
April 27, 2009
WASHINGTON -- U.S. Rep. Hank Johnson (GA-04) introduced the Mobile Workforce State Income Tax Fairness and Simplification Act – H.R. 2110 – on April 27.
It would prevent Americans who work in multiple jurisdictions from being taxed by state and local governments other than the places in which they live or perform duties over an extended period.
The Act is an effort to address the problems impacting thousands of employees and businesses every year in the U.S. related to the highly complex and widely divergent state nonresident personal income laws and employer withholding requirements.
In many cases, some workers must file income tax forms for doing work in states other than where they reside or their employer is headquartered. Johnson believes this hurts small businesses and individuals, especially during this recession.
“This not only simplifies the system, but makes it fair for people who work in multiple jurisdictions,” said Johnson.
Rep. Johnson forged a compromise between the Federation of Tax Administrators (FTA) and the Council On State Taxation (COST) to produce this bipartisan legislation.
The resulting legislation now reflects an agreement on the definition of compensation, “presence” in a state, what constitutes a “work day” and those individuals, such as professional athletes, who will not be covered under the bill. It also sets a 30-day threshold for individuals to earn income in another jurisdiction without having to file income taxes in that state.
In addition, H.R. 2210 responds to the concerns of municipal governments, and clarifies that in-state residents will be fully taxable for any work time spent in municipalities that impose income taxation.
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