U.S. Sens. Richard Blumenthal (D-Conn.) and Chris Murphy (D-Conn.) have introduced a bill for tax fairness for individuals who telework in one state for companies located in another.
The two senators said in a statement a patchwork of conflicting state tax rules burden workers and discourage telecommuting. Companion legislation has been introduced in the House by U.S. Reps. Jim Himes (CT-04), Rosa DeLauro (CT-03), Elizabeth Esty (CT-05) and Chellie Pingree (ME-01).
“It simply makes no sense that someone who works and lives in one state should have to pay taxes to another just because they telework,” Blumenthal said. “As more and more people are teleworking, this commonsense bill would ensure that they aren’t penalized for finding a solution that works for them and for their employer.”
Murphy said the outdated tax system overtaxes in-state workers who are employed by out-of-state companies, yet never leave Connecticut. “Our bill will make workers’ lives easier by establishing one, simple standard and avoiding the conflicting patchwork of state tax rules,” he said.