Rep. Johnson’s bipartisan Mobile Workforce Tax Simplification bill passes House
Congressman reaches across the aisle with Rep. Bishop (MI-08) to help workers, businesses at tax time
WASHINGTON, D.C. – Congressman Hank Johnson’s (GA-04) bipartisan bill “The Mobile Workforce State Income Tax Simplification Act of 2015” H.R. 2315 passed the House of Representatives by voice vote Wednesday night.
The bill – with 179 House colleagues in support on both sides of the aisle – streamlines the state income tax code across the country by setting a 30-day threshold before non-resident state income taxes take effect for employees who must travel for work.
The bipartisan and bicameral legislation, introduced in the Senate by Sens. John Thune and Sherrod Brown, and sponsored by Republican Rep. Mike Bishop (MI-08) in the House, simplifies state income tax requirements for employees who work multiple days per year outside the state of their residence.
“Under current law, some workers must file income tax forms for doing work in states other than where they reside or their employer is headquartered,” said Johnson. “This is too burdensome and hurts small businesses and individuals. The bipartisan Mobile Workforce legislation not only simplifies the system, but makes it uniform for people who work in multiple jurisdictions.”
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.
“With so much red tape interwoven in today’s tax code, our Mobile Workforce bill is a commonsense way to cut through the clutter and simplify the filing process,” said Rep. Bishop. “By streamlining these requirements across states, we can reduce compliance costs and confusing paperwork for employees and employers alike. I urge the Senate to take up this bipartisan legislation to support our traveling workforce and help businesses grow and save.”
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.”
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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