United States Reintroduces Mobile Workforce Tax Bill
Problems with outdated tax laws certainly are widespread and the United States is just one example of a place where work patterns have left tax rules well and truly behind – in the haze of a car’s tailpipe or the wake of airplane’s contrail, you could say. Because, unbelievably, we are still in a situation where employees may be legally required to file an income tax return in every state in which they have conducted business, even if they were there for only one day. Surely the costs of administering such absurd rules routinely outweigh the amount of tax – if any – that is collected from mobile employees!
But thankfully sanity may soon prevail. A bill has been reintroduced into Congress to standardize state income tax requirements for employees working out of their state of residence, and the measure has wide bipartisan support. However, those affected by such anachronistic rules shouldn’t get their hopes up too much. These proposals have entered Congress before without being approved. And one gets the impression that House Republicans and the fledgling Trump administration have bigger fish to fry for the time being.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look