Driving home their concern for Connecticut telecommuters, both Sen. Chris Dodd, D-Conn., and Congressman Christopher Shays, R-Bridgeport, recently introduced legislation called "The Telecommuter Tax Fairness Act of 2004." This bi-partisan measure would protect thousands of Connecticut residents who telecommute to New York employers from the risk that they will owe taxes to both states on the income they earn while working at home.

The risk arises because of a New York personal income tax rule known as the "convenience of the employer rule." Under this rule, New York may tax nonresidents who choose to telecommute part-time to their New York firms on the income the telecommuters earn at home, even though the employees' home states may tax the same income.

The Telecommuter Tax Fairness Act would prohibit New York -- and any other state -- from subjecting nonresident telecommuters to the risk of double taxation. By relieving interstate telecommuters in Connecticut (and nationwide) of a potential double income tax burden, the tax fairness act would remove a significant financial disincentive to telecommute. And by clearing the road for increased telecommuting, the act it would: (1) reduce air pollution, traffic congestion and unnecessary spending on transportation infrastructure; (2) reduce gas prices and our dependence on foreign countries for oil; (3) strengthen the capacity of both government and businesses to sustain operations during emergencies; (4) strengthen corporate America's ability to operate cost-effectively without having to ship American jobs to offshore workers; (5) promote economic growth in our rural communities; (6) facilitate the integration of the disabled into the mainstream workforce; and (7) help America's working families balance their professional and personal responsibilities.

By introducing the act, Connecticut's congressional representatives have recognized the importance of these goals for our country. To achieve these goals, Congress must place passage of the Dodd-Shays legislation on the fast track.