For Immediate Release: DODD TO INTRODUCE THE TELECOMMUTER TAX FAIRNESS ACT Measure will protect Connecticut [and other] telecommuters from New York taxation August 2, 2004 Fairfield, CT. - In an effort to prevent Connecticut and telecommuters nationwide from unfair double taxation, Senator Chris Dodd today announced his intention to introduce a measure to prevent the state of New York from levying taxes on Connecticut telecommuters for work they perform in Connecticut. “Connecticut workers help drive our economic growth. They shouldn't have to pay an unfair ‘toll’ tax simply because they work from home,” said Dodd. “Telecommuters in our state play a big part in our economy and they shouldn’t be penalized for their work. This measure will help shield and protect them from unfair and unwarranted taxes and ensure that they can reap the benefits of telecommuting.” Currently, the state of New York requires telecommuters to pay income tax on 100 percent of their earnings regardless of where they work as long as their company is based in New York. Employees who work part-time from home in Connecticut must still pay income taxes to New York for work performed in Connecticut, while at the same time becoming obligated to pay taxes to Connecticut for that work. The result is that Connecticut workers may be taxed twice on income earned by telecommuting - once by Connecticut, and again by New York. This threat of double taxation can serve as a powerful disincentive for people to telecommute. Dodd’s initiative will prevent states like New York from collecting taxes from employees for work performed outside that state. Employees would have to be physically present and working in the state for a state to be authorized to collect income tax from the employee. Telecommunication advancements of the 21st century offer greater flexibility to workers without compromising productivity, ultimately benefiting the economy. Telecommuters provide valuable, cost efficient options for many businesses, families, and communities. Workers can be more involved at home with their families by avoiding a daily commute. Communities benefit by less congested roads, rails, and sidewalks, and the reduction of air-pollution caused by heavy volumes of traditional commuters. Telecommuting is not just a convenience for workers, but it is also an asset to companies and a relief to local governments. In sum, telecommuters provide efficiency while promoting the environmental and infrastructural conservation that states promote. The measure has garnered bipartisan support. Congress Chris Shays intends to introduce companion legislation in the U.S. House of Representatives.