N.Y. double taxes telecommuters, others to follow (question)

Ok, I hope others are paying attention here, as this is a potentially important issue that could come to bear in many states, not just New York (which seems to be leading the pack in figuring out how to maximize their tax revenues at the expense of workers that just happen to be unlucky enough to do business in their state).

While browsing through the business section of The Washington Post, I saw a clip in the business section that noted that New York's Court of Appeals had decided on behalf of the state of New York that workers that telecommute (such as one poor employee that was based in Nashville, Tennessee) for businesses in New York must pay New York state tax on his full income, not just on the portion he earned while while working in the actual New York offices.

The small article noted this could have wide-reaching impact, and I believe it does.

If other states follow suit, employees everywhere could be subjected to taxes like this, basically facing double taxation of their wages at the state levels.

I'm never a fan of higher taxes, no matter how much some idiots might cry for raising taxes, and I am most certainly not a fan of higher taxes in this form. If I work at my home, and I pay taxes based on my state of residence, then I shouldn't be paying taxes on my entire wages to a state I'm not even in, or using the resources of.

I would hope that this is appealed up through the federal courts, and that eventually the decision is over-turned. Hopefully a sensible approach will be applied, lest states like New York ruin the prospects of telecommuting for all. Especially given other articles like this Ack! time to panic - two thirds of worlds resources used up which remind us of the need to be more conservational with our resources, and reminds us of the need to look for better ways to do business and live our lives.

It's bad enough that many businesses and organizations don't offer telecommuting when they could, and don't do more to encourage employees to telecommute to help cut down on over-crowded road ways, and the pollution that is generated by the cars and trucks running back and forth to businesses.

For more news in this area, and some help in becoming an activist on this issue, see this link: Work at home-ers take action now to protect your right to fair taxation if you telecommute or have a work at home job.
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Reply #1 Top
Just think, a business can run an entire department without having to supply work spaces, rest rooms, break rooms, parking lots, security, and other resoureces. Employees do not have to worry about traffic, wardrobe, packing lunches (or eating out) or other headaches of "going" to work.

Fuel use, energy at company buildings, traffic, and pollution are all reduced significantly when workers can stay home to do their job.

Of course governments will find ways to kill a good thing. There is absolutely no downside to telecommuting, and all industries (where it is feasible) should be encouraged (not discouraged) to look into it.

Short-sightedness in government is among our greatest problems. Now it looks like the pin heads are at it again.
Reply #2 Top
Telecommuters who work in NY and live elsewhere, whether it be NJ, CT or PA, have been complaining for years that they shouldn't be double taxed just because they work in NY and live elsewhere. Back in the day, they used to be taxed only on that portion they work in NY. But now they're going to be taxed on the full amount of their check? That really sucks and is unfair! It's bad enough when you live in NY you have to pay City, State and Federal taxes. What gets me is the government collects all this money and then they never have enough to fix problems in the city?

Let's hope the other states don't follow suit. I think there definately would be a rebellion of sorts. We'ld all be yelling through our windows, "I'm mad as hell and I'm not going to take it anymore!"