Rep. Johnson introduces bipartisan Mobile Workforce State Income Tax Simplification Act of 2020

Press Release

Congressman Hank Johnson (GA-04) today reintroduced his bipartisan bill, the Mobile Workforce State Income Tax Simplification Act of 2020, with Rep. Steve Chabot (OH-01). The bipartisan and bicameral legislation simplifies state income tax requirements for employees who spend 30 days or less working in states outside the state of their residence.

Similar versions of this legislation passed the House by voice vote in the 115th Congress, 114th Congress, and the 112th Congress.

"The tax system is already too complicated as it is," Rep. Johnson said. "This important bipartisan legislation simplifies the tax code to help Americans who work across multiple jurisdictions from being taxed by state and local governments other than the places in which they live or perform duties over an extended period."

The Mobile Workforce State Income Tax Simplification Act would:

Establish a uniform threshold where workers could be required to file and businesses to withhold tax only after an employee has worked more than 30 days in a state. Three categories of highly paid, highly mobile workers are not included under this legislation: professional athletes, professional entertainers, and certain prominent public figures.
Currently, many employees are legally required to file an income tax return in every state they travel for work, even if just for a single day. Businesses must also comply with the states' varying withholding requirements for their employees' travel.

"Technological advancements are making it easier and easier for the American people to work nearly anywhere, especially from home and while traveling," said Rep. Chabot. "However, this flexibility is threatened by the complex maze of jurisdictional tax rules that could subject an individual to a particular state or locality's income tax without their knowledge. By establishing a clear, bright line standard for the application of income tax liability on out-of-state workers, the legislation we're introducing today will simplify tax jurisdiction questions and encourage the flexibility and mobility that have helped our economy grow and prosper."

Cosponsors include: Rep. David N. Cicilline (RI-1); Rep. Bonnie Watson Coleman (NJ-12); Rep. Jim Cooper (TN-5); Rep. Ted Deutch (FL-22); Rep. Alcee Hastings (FL-20); Rep. Sheila Jackson Lee (TX-18); Rep. Eric Swalwell (CA-15); Rep. Steve Chabot (OH-01); Rep. Mo Brooks (AL-05); Rep. Mark Walker (NC-06); Rep. Tom Rice (SC-07).

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