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House Passes State Tax Simplification Bill (05/17/12) Mike Godfrey

The U.S. House has passed legislation that would simplify the tax reporting requirements for people employed in multiple state jurisdictions. The Mobile Workforce State Income Tax Simplification bill establishes a 30-day threshold for tax liability and employer withholding. A worker’s earnings would still be subject to tax in the states where he or she is present and working for more than 30 days annually. Under the bill, states remain able to set any income tax rate they deem appropriate.