Mobile Workforce State Income Tax Fairness and Simplification Act: On May 13, 2008, Tax Executives Institute Filed the Following Comments with the House Judiciary Subcommittee on Commercial and Administrative Law, Concerning H.R. 3359, the Mobile Workforce State Income Tax Fairness and Simplification Act of 2007 - Tax Executive

Title: Mobile Workforce State Income Tax Fairness and Simplification Act: On May 13, 2008, Tax Executives Institute Filed the Following Comments with the House Judiciary Subcommittee on Commercial and Administrative Law, Concerning H.R. 3359, the Mobile Workforce State Income Tax Fairness and Simplification Act of 2007

Author: Tax Executive

Date: 2008-05-01

Mobile Workforce State Income Tax Fairness and Simplification Act: On May 13, 2008, Tax Executives Institute Filed the Following Comments with the House Judiciary Subcommittee on Commercial and Administrative Law, Concerning H.R. 3359, the Mobile Workforce State Income Tax Fairness and Simplification Act of 2007 - Tax Executive

On behalf of Tax Executives Institute (TEI), I urge prompt consideration and enactment of H.R. 3359, the Mobile Workforce State Income Tax Fairness and Simplification Act of 2007. Employers nationwide have a direct stake in the development of fair and uniform rules governing nonresident taxation and withholding, regardless of whether they are large multinational corporations or small businesses that pursue opportunities outside their home State. Employees nationwide also have an interest in the enactment of the legislation, not only to minimize their exposure to unfair taxation but to bring a measure of certainty to an area of the tax law that can impede economic growth and efficiency. The Commerce Clause of the Constitution gives Congress plenary authority to remove barriers and open markets between the States. In the past, Congress has enacted legislation, for example, to preclude non-resident State taxation of certain distributions from non-qualified deferred compensation plans. That authority should again be exercised here to limit the authority of States to tax certain income of employees for employment performed in other States and localities. H.R. 3359 represents a balanced approach toward ameliorating employer and employee uncertainty in respect of individual State income taxation and withholding for individuals temporarily present in another State while discharging their employment responsibilities and preserving the States' ability to impose taxes commensurate with the benefits accorded nonresidents. Tax Executives Institute therefore supports enactment of the legislation. Background--About Tax Executives Institute