Rep. Johnson introduces bipartisan Mobile Workforce State Income Tax Simplification Act of 2015
Congressman reaches across the aisle with Rep. Bishop (MI-08) to help workers, businesses at tax time
WASHINGTON, D.C. – Congressman Hank Johnson (GA-04) today introduced a bipartisan bill with Rep. Mike Bishop (MI-08), the Mobile Workforce State Income Tax Simplification Act of 2015. The bipartisan and bicameral legislation -- introduced in the Senate by Sens. John Thune and Sherrod Brown -- simplifies state income tax requirements for employees who work multiple days per year outside the state of their residence.
“The tax system is already too complicated as it is,” Rep. Johnson said. “This important bipartisan legislation simplifies the tax code and would 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.”
Like its Senate counterpart, H.R. 2315 provides that an employee’s earnings remain subject to full tax in the state of his or her residence. An employee would only be subject to another state’s taxes if he or she works there more than 30 days per calendar year.
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.
“Our state income tax structure is burdensome for everyone involved,” said Rep. Bishop. “Dozens of reporting requirements have been imposed on our business community, many of which depend on an employee’s length of travel and income. Our aim is to create one common-sense system by eliminating the complicated paperwork and red tape for employees and reducing costs for our businesses.”
Johnson added: “This is a pro-growth bill. If signed into law, it would not just simplify the tax burden, but protect workers and businesses – large and small – from the costs of compliance with the hodgepodge of 50 different tax systems, thus enhancing investment and productivity. H.R. 2315 will vastly simplify the patchwork of existing inconsistent and confusing state rules. It would also reduce administrative costs to states and lessen compliance burdens on consumers.
“For example, if an Atlanta-based employee of a St. Louis company travels to headquarters on a business trip once a year, that employee would be subject to Missouri tax, even if his annual visit only lasts a day. And yet if this same employee travels to Maine, her trip would only be subject to tax if her trip lasts for 10 days, or 15 days if she travels to New Mexico on business.
“The bill that Rep. Bishop and I have introduced would fix this problem by establishing a uniform law that would ensure the correct amount of tax is withheld and paid to the states without the undue burden of the current dysfunctional system. As the Ranking Member of the House Judiciary Subcommittee that exercises jurisdiction over this issue, I will work tirelessly alongside Congressman Bishop to push this issue this Congress.”
Original co-sponsors of the Mobile Workforce State Income Tax Simplification Act of 2015 include: Jason Chaffetz (UT-03), Lamar Smith (TX-21), Mark Walker (NC-06), Dennis Ross (FL-15), Patrick Murphy (FL-18), David Cicilline (RI-01) and Eric Swalwell (CA-15).
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