The Honorable Jim Himes
United States House of Representatives
214 Cannon House Office Building
Washington, DC 20515
Dear Representative Himes:
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write in support of H.R. 2600, your Telecommuter Tax Fairness Act. This bill would prohibit a state from taxing nonresident workers when they are physically present in a different state. The legislation would end New York's destructive policy of requiring employees of companies based in New York to pay income tax in that state regardless of where the work was performed. Additionally, H.R. 2600 would prevent a potential tax nightmare for the millions of telecommuters (and counting) across the nation.
Given our current economic climate, telecommuting provides individuals with increased workplace flexibility as they strive to maximize cost savings and productivity. Not only do employees save on personal expenses such as gasoline, but they also help their businesses to substantially lower real estate and energy costs - savings that ultimately contribute to stronger financial security and fewer layoffs. Telecommuters also tend to be more efficient employees, as they are spared from arduous trips to the workplace and are given the flexibility to meet non-work responsibilities. Sun Microsystems, which employs 20,000 individuals in an "Open Work" program, estimates that telecommuters give 60 percent of their saved travel time back to the company.
Although no other state besides New York currently applies a telecommuter tax, other states will have strong fiscal and political temptations to apply their laws in ways that harshly penalize out-of-state workers. This behavior will become likelier as telecommuting becomes more popular. H.R. 2600 would end such discriminatory practices and thwart potential "copycat" legislation from more governments.
Some lawmakers may have reservations over H.R.2600 because of its implications for the 10th Amendment to the U.S. Constitution. While we understand these concerns, we believe that there is a more powerful constitutional issue at stake: the necessity to protect Americans from predatory state tax policies, as reflected in the Commerce Clause and elsewhere. Your legislation upholds this vital principle.
If government officials are serious about growing our economy, they need to implement legislation that will help strengthen American businesses and empower American workers. H.R. 2600 would do just that. I urge all Members of Congress to cosponsor the Telecommuter Tax Fairness Act. Any roll call votes on this bill will be significantly weighted in our annual Rating of Congress.
Sincerely,
Jordan Forbes
Federal Government Affairs Manager