Remote and Mobile Worker Relief Act

Floor Speech

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Mr. THUNE. Mr. President, during New York's toughest moments during the pandemic, medical professionals from around the country came to hard-hit New York City to help. They formed an essential part of the city's medical response, and they undoubtedly saved lives. They are deserving of New York's profound gratitude--and apparently of something else: tax bills. That is right. In May, New York Governor Andrew Cuomo announced that New York would be levying income tax on any money these medical professionals made while they were there.

Now, individuals can generally receive a tax credit in their home State for income tax paid to another State, thus avoiding double taxation of their income, but since New York has one of the highest income taxes in the country, a lot of these medical professionals will be facing a higher than normal tax bill on any money they earn in New York. The situation is even worse for residents of States without an income tax, like my home State of South Dakota. Medical professionals from those States will simply have to absorb the full cost of this unexpected bill.

The healthcare workers who traveled to New York are not alone in facing a complicated tax situation. For Americans who regularly spend limited time working in different States throughout the year, the situation can be even worse. A traveling nurse, for example, or a corporate trainer might work in not just one but several additional States during a given year, and navigating the resulting income tax situation can be incredibly complicated.

Some States, like New York, aggressively tax individuals they deem to have earned income within their borders, even if the income in question is just the salary they earned from their employer while attending a 2- day training conference in the State. Other States allow nonresidents to work for longer periods--as long as 60 days in some cases--before they require an individual to file an income tax return.

Navigating different States' requirements can be a real burden for both employees and employers and can discourage interstate commerce. It is particularly challenging for small businesses, which frequently lack the in-house tax staff and tracking capabilities of larger organizations.

This situation cries out for a solution. For the past four Congresses, I have introduced legislation--the Mobile Workforce State Income Tax Simplification Act--to create a uniform standard for mobile workers. Under my bill, if you spent 30 days or fewer working in a different State, you would be taxed as normal by your home State. If you spent more than 30 days working in a different State, you would be subject to that other State's income tax in addition to the income tax in your home State. Having a universal rule like this would make life a lot easier for workers and for employers.

In June I introduced an updated version of my mobile workforce bill-- the Remote and Mobile Worker Relief Act, which I am pleased to announce has been included in the HEALS Act, the phase 4 coronavirus relief package the Republicans introduced yesterday. Like my original mobile workforce bill, the Remote and Mobile Worker Relief Act would create a uniform, 30-day standard governing State income tax liability for mobile workers, but my new bill goes further and addresses some of the particular challenges faced by mobile and remote workers as a result of the coronavirus.

The Remote and Mobile Worker Relief Act would establish a special 90- day standard for healthcare workers who travel to another State to help during the pandemic. This should ensure that no healthcare worker faces an unexpected tax bill for the contributions he or she makes to fighting the coronavirus.

My new bill also addresses the possible tax complications that could face remote workers as a result of the pandemic. During the coronavirus crisis, many workers who usually travel to their offices every day have ended up working from home. This doesn't present a tax problem for most employees, but it does present a possible problem for workers who live in a different State than the one in which they work.

Workers who live in a different State from the one in which they work are subject to income tax from both States, but under current State tax laws, they usually pay most or all of their State income taxes to the State in which they earn their income rather than their State of residence. However, now that some workers who usually work in a different State have been working from home, there is a risk that their State of residence could consider the resulting income as allocated to and taxable by it as well. That could mean a higher tax bill for a lot of workers.

My bill would preempt this problem by codifying the pre-pandemic status quo. Under my bill, if you plan to work in North Carolina but had to work from home in South Carolina during the pandemic, your income would still be taxed as if you were going into the office in North Carolina every day, just as it would have been if the pandemic had never happened.

Relief for mobile workers is a bipartisan idea. A version of my original mobile workforce bill has passed the House of Representatives multiple times, and the only reason it hasn't advanced so far in the Senate is because of the opposition of a handful of States that aggressively tax--you have got it--temporary workers.

Now that the pandemic has highlighted the challenges facing mobile workers and the potential challenges facing remote workers, I am pleased that my legislation will be considered here in the Senate as part of the broader coronavirus relief package that we hope to pass in the next couple of weeks. I am grateful to Chairman Grassley for his support for this legislation.

It is unconscionable--unconscionable--that we would allow healthcare workers who risked their own lives to care for individuals in coronavirus-stricken States to be punished with unexpected tax bills. We need to make sure that Americans who work from home to help slow the spread of the virus don't face a complicated tax situation or an unexpectedly high tax bill as a result.

Americans have faced enough challenges over the past several months. Let's make sure tax problems are not among them.

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