Blumenthal, Hassan, Shaheen & Murphy Introduce Bill to Prevent Teleworkers From Unfair Taxes
[WASHINGTON, D.C.] – U.S. Senators Richard Blumenthal (D-CT), Maggie Hassan (D-NH), Jeanne Shaheen (D-NH), and Chris Murphy (D-CT) introduced legislation today to prevent people who telework in one state for companies located in another state from being taxed more than their fair share. With more Americans than ever able to work remotely due to technological advancements and as more employers shift to telework after changes they made during the pandemic, the Multistate Worker Tax Fairness Act would simplify the tax code by establishing a simple, uniform standard based on physical presence for all states and ensure teleworkers are not taxed unfairly.
“This bill would prevent workers in Connecticut and across the country from being penalized for teleworking,” said Blumenthal. “During the pandemic, many Americans worked from home, and many workers and employers are embracing this shift. Yet the confusing patchwork of state tax rules is a burden to teleworkers and businesses, which can lead to workers being unfairly taxed. This commonsense bill creates a simple standard, putting a stop to the unfair penalties placed on teleworkers.”
“Granite Staters living and working in New Hampshire shouldn’t have to pay another states’ taxes, it is as simple as that. Yet with the expansion of remote work during the pandemic, we’ve seen states attempt to infringe on Granite Staters’ rights,” said Hassan. “This bill makes it clear once and for all that other states cannot unconstitutionally tax New Hampshire residents.”
“As we’re working to get our economy back on track, we should pursue every avenue available to support, not punish, American workers who have struggled to make ends meet during these enormously challenging times. Many Granite Staters have been working remotely during this pandemic to protect the health of their families and communities, and they should not be penalized for it,” said Shaheen. “I’m glad to partner with Senator Blumenthal on this effort to ensure that New Hampshire workers are protected from opportunistic out-of-state taxing authorities.”
“Technological advances are changing the way that we work and our tax laws should reflect that. The Multistate Worker Tax Fairness Act protects Connecticut workers from getting hit with taxes just because their job isn’t locally based by establishing a uniform tax standard,” said Murphy.
The Multistate Worker Tax Fairness Act establishes a simple, uniform federal standard based on a worker’s physical presence. The bill prohibits a state from imposing an income tax on the compensation a nonresident earns when that person is not physically in the state, and it ensures that people with out-of-state employers who telework, or whose job requires them to occasionally work in another state, do not have to pay more than their fair share of state income taxes.
-30-