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Senators Back Tax Parity for Mobile Workers

Posted on Feb. 5, 2021

Senators voiced their support during a marathon voting session for easing the tax burden faced by traveling workers by creating a temporary nexus exception during the coronavirus pandemic.

An amendment offered February 4 by Finance Committee member John Thune, R-S.D., and supported by fellow committee member Sherrod Brown, D-Ohio, instructs committees drawing up the budget reconciliation package to establish a deficit-neutral reserve fund for states to have a uniform taxation system for mobile workers. The amendment was approved by voice vote with no audible objections.

Speaking on the Senate floor, Thune said the amendment, which mirrors the Remote and Mobile Worker Relief Act of 2020, would help traveling workers navigate the numerous tax forms they’re required to complete and prevent them from being surprised by a large tax bill. 

Brown said he and Thune, the Republican whip, have been working on a mobile workforce bill for the past decade. “A surprise tax bill is the last thing [mobile workers] need,” Brown said. But the vote will mean little, despite the issue finding overwhelming support over the years. 

Amendments approved during the marathon voting session preceding a budget resolution vote are nonbinding, but they allow lawmakers to force a vote and test the appeal of legislation they back.

While no senators objected to the measure, Senate Majority Leader Charles E. Schumer, D-N.Y., has opposed mobile workforce bills in the past, arguing that they dip into New York’s revenue stream. His opposition to the measure would keep it from being included in the budget reconciliation package that will be prepared by Democrats and allow them to approve up to $1.9 trillion in COVID-19 relief by a simple majority.

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