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Dodd, Shays to Introduce
the Telecommuter Tax Fairness Act
Stamford - In an effort to prevent Connecticut
and telecommuters nationwide from unfair double taxation,
Senator Chris Dodd and Representative Christopher Shays today
announced their intention to introduce a measure to prevent
the state of New York from levying taxes on Connecticut telecommuters
for work they perform in Connecticut.
“Connecticut workers help drive our economic growth.
They shouldn’t have to pay an unfair ‘toll’
tax simply because they work from home,” said Dodd.
“Telecommuters in our state play a big part in our economy
and they shouldn’t be penalized for their work. This
measure will help shield and protect them from unfair and
unwarranted taxes and ensure that they can reap the benefits
of telecommuting.”
“This bill is about fairness. It is simply unfair
to tax Connecticut telecommuters twice.” Shays said.
“We are promoting a policy that will help bring taxation
in line with current realities of technology and promote telecommuting,
which can improve gridlock and reduce environmental harm.”
Currently, the state of New York requires telecommuters to
pay income tax on 100 percent of their earnings regardless of
where they work as long as their company is based in New York.
Employees who work part-time from home in Connecticut must pay
income taxes to New York for work performed in Connecticut,
while at the same time being obligated to pay taxes to Connecticut
for that work. The result is that many Connecticut workers are
taxed twice on income earned while telecommuting - once by Connecticut,
and again by New York. This threat of double taxation can serve
as a powerful disincentive for people to telecommute.
Dodd and Shays’ initiative will prevent states like New
York from collecting taxes from employees for work performed
outside that state. Employees would have to be physically present
and working in the state for a state to be authorized to collect
income tax from the employee.
Telecommunication advancements of the 21st century offer greater
flexibility to workers without compromising productivity, ultimately
benefiting the economy. Telecommuters provide valuable, cost
efficient options for many businesses, families, and communities.
Workers can be more involved at home with their families by
avoiding a daily commute. Communities benefit by less congested
roads, rails, and sidewalks, and the reduction of air-pollution
caused by heavy volumes of traditional commuters. Telecommuting
is not just a convenience for workers, but it is also an asset
to companies and a relief to local governments. In sum, telecommuters
provide efficiency while promoting a cleaner environment and
less stress on roads and rails that states promote.
Contact: Sarah Moore,
202/225-5541
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