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Congressman Mike Bishop

Representing the 8th District of Michigan


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Bishop’s Bill to Simplify State Income Tax Code Passes House

September 22, 2016
Press Release

WASHINGTON – Congressman Mike Bishop’s Mobile Workforce State Income Tax Simplification Act (H.R. 2315) passed the U.S. House last night with strong bipartisan support. Co-sponsored by Democrat Rep. Hank Johnson (GA-04) and 179 House colleagues on both sides of the aisle, the bill streamlines the state income tax code across the country by setting a 30-day threshold before non-resident state income taxes take effect for employees who must travel for work.


“With so much red tape interwoven in today’s tax code, our Mobile Workforce bill is a commonsense way to cut through the clutter and simplify the filing process,” said Rep. Bishop. “By streamlining these requirements across states, we can reduce compliance costs and confusing paperwork for employees and employers alike. I urge the Senate to take up this bipartisan legislation to support our traveling workforce and help businesses grow and save.”


“Under current law, some workers must file income tax forms for doing work in states other than where they reside or their employer is headquartered,” said Rep. Johnson. “This is too burdensome and hurts small businesses and individuals. The bipartisan Mobile Workforce legislation not only simplifies the system, but makes it uniform for people who work in multiple jurisdictions.”


Like its bipartisan companion bill in the U.S. Senate (S. 386), led by Senators John Thune and Sherrod Brown, H.R. 2315 provides that an employee’s earnings remain subject to full tax in the state of his or her residence. An employee would only be subject to another state’s taxes if he or she works there more than 30 days per calendar year.


Without this legislation, many employees today are legally required to file an income tax return in every state they work. Businesses must also comply with other states’ varying withholding requirements for their employees’ travel. A study conducted by Ernst & Young in 2015 found that H.R. 2315 will raise tax revenue in some states, while others would only see a very minor change.


A total of 308 Mobile Workforce Coalition members have endorsed Rep. Bishop’s legislation. The following links also include the list of co-sponsors in both the U.S. House and Senate. Additional information can be found below: