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Letter to the Editor
The Washington Times
Published May 29, 2004
All the conveniences of home
Regarding "Working at home has not been big," (Business, Thursday), there is a significant obstacle to telecommuting that Congress must act now to remove: A tax rule, which has been applied by New York (among other states), called the "convenience of the employer" rule.
The rule requires nonresidents who elect to telecommute some or most of the time to their New York employers to pay New York taxes on the income they earn while working at home outside New York. Because a telecommuter's home state may also tax the income he or she earned at home without offering credit for the New York tax, the interstate teleworker may be taxed twice.
On April 26, the U.S. Supreme Court refused to hear constitutional challenges to this rule in a case called Zelinsky v. Tax Appeals Tribunal of New York. The Supreme Court's refusal to hear the case effectively authorized states everywhere to tax interstate telework, threatening the growth of telecommuting nationwide.
By making telework too expensive for many Americans, states applying a convenience rule may interfere with federal objectives. They may, for example: (1) Encourage cost-conscious employers to export American jobs; (2) reduce telework's effectiveness as an emergency management strategy, both for public and private employers; (3) further marginalize some disabled workers who require telework as a reasonable accommodation in order to work at all (contravening the president's "New Freedom Initiative" to promote full integration of the disabled into mainstream American life); and (4) fuel our country's demand for high-priced gasoline and oil imports. To redress the problems the convenience rule creates, draft federal legislation has been prepared and is circulating in Washington. This legislation would prohibit states from subjecting nonresident telecommuters to double taxation on income earned when they work from home. Congress must prevent individual states from compromising the national goals telework can help achieve.
NICOLE BELSON GOLUBOFF
Scarsdale, N.Y.
Copyright © 2004 News World Communications, Inc. All rights reserved.
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