The Simplification of State Tax Laws


Tax Executives Institute, Inc. has issued a letter supporting the enactment of H.R. 1864, the Mobile Workforce State Income Tax Simplification Act of 2011.

H.R. 1864 is a measure that is designed to “create a uniform standard for the taxation by states of income earned by employees who travel for work, and the related withholding obligations of their employers,” TEI writes.

Currently, TEI explains, employees and employers are “being subject to a patchwork of varied and sometimes inconsistent withholding and tax rules.”

“With more and more workers performing their duties from locations other than their home states, the need has never been greater for a uniform standard governing when states can require employers to withhold state income tax,” TEI Tax Counsel Daniel B. De Jong explained.

According to De Jong, the importance of this issue will continue to grow as technology allows employees to work more and more from remote locations. “The slow pace of economic recovery in the U.S. has forced both state departments of revenue and businesses to do more with less,” he said.

“This reduction in resources on both sides makes swift enactment of H.R. 1864 even more critical as it would make the compliance process significantly more efficient,” he explained.

In other developments,

The Council On State Taxation has released their ninth annual study of state and local business taxes.

Kirk Lyda and Justin Hepworth of Jones Day highlight some Texas tax refund traps.

The Center on Budget and Policy Priorities takes a closer look at the harmful effects of state budget cuts.

For those of you looking to come clean, the Multistate Tax Commission has put together a list of upcoming state tax amnesties.

By Priya D. Nair