Combining the Mobile Workforce and Telecommuter Tax Acts

46 Pages Posted: 19 Aug 2012  

Edward A. Zelinsky

Yeshiva University - Benjamin N. Cardozo School of Law

Date Written: August 15, 2012

Abstract

Mobile Workforce State Income Tax Simplification Act of 2012 (“the Mobile Workforce Act”) and the Telecommuter Tax Fairness Act of 2012 (“the Telecommuter Act”) each respond to the pressing national need to rationalize the states’ income taxation of nonresident workers in light of modern technology and the work patterns such technology facilitates. Both Acts must be passed to create a comprehensive framework for the states’ income taxation of nonresident workers in the 21st century.

The Mobile Workforce Act addresses the question today generally denoted as nexus, that is, who can tax. The Telecommuter Act addresses the question which is today denominated as apportionment, namely, how much can be taxed. Congress must answer both inquiries properly, lest multiple and excessive state tax burdens on nonresident workers unnecessarily interfere with the efficient work patterns of a modern economy.

Keywords: nonresident income taxes, telecommuting, nexus, apportionment, due process clause, commerce clause, convenience of the employer, mobile workforce

Suggested Citation

Zelinsky, Edward A., Combining the Mobile Workforce and Telecommuter Tax Acts (August 15, 2012). Cardozo Legal Studies Research Paper No. 371; State Tax Notes, Vol. 65, No. 319, 2012. Available at SSRN: https://ssrn.com/abstract=2129804 or http://dx.doi.org/10.2139/ssrn.2129804

Edward A. Zelinsky (Contact Author)

Yeshiva University - Benjamin N. Cardozo School of Law ( email )

55 Fifth Ave.
New York, NY 10003
United States
212-790-0277 (Phone)

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