Comments on: Another reason to not telecommute, from an employee’s perspective http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/ Tue, 18 Aug 2009 22:20:45 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: breichelt http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/comment-page-1/#comment-511 breichelt Thu, 03 Nov 2005 10:02:27 +0000 http://s194721765.onlinehome.us/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/#comment-511 I agree Eric, it seems like New York would be shooting itself in the foot. Businesses wont be able to find local developers because they have to pay them too much, and nobody would want to telecommute cause they'd be taxed twice. End result? Businesses leave NYC and the city loses a bunch of money. They're trying to correct the problem by unnatural means, outside of the natural marketplace. I agree Eric, it seems like New York would be shooting itself in the foot. Businesses wont be able to find local developers because they have to pay them too much, and nobody would want to telecommute cause they’d be taxed twice. End result? Businesses leave NYC and the city loses a bunch of money. They’re trying to correct the problem by unnatural means, outside of the natural marketplace.

]]> By: ewise http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/comment-page-1/#comment-510 ewise Thu, 03 Nov 2005 09:51:06 +0000 http://s194721765.onlinehome.us/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/#comment-510 I saw an article a while back that New York, in particular New York City was pushing for charging income tax for any telecommuter that does work for a company in their state. This was a reaction to companies in New York getting sick and tired of having to pay very high premium salaries to local workers who on average are no better than workers elsewhere in the country. If you can get a developer with 5 years of experience for 50k in the midwest, and an equally talented one in NYC for 85k, which are you going to pick provided they don't have to be on site? The market can and does adjust itself for efficiency and the only way high cost places will be able to maintain their tax base as telecommuting becomes more accepted and easy is through direct government intervention which in this case would seemly limit competition, stifle innovation, and shrink the pool of qualified candidates since no one would willingly choose to be taxed twice. I saw an article a while back that New York, in particular New York City was pushing for charging income tax for any telecommuter that does work for a company in their state.

This was a reaction to companies in New York getting sick and tired of having to pay very high premium salaries to local workers who on average are no better than workers elsewhere in the country.

If you can get a developer with 5 years of experience for 50k in the midwest, and an equally talented one in NYC for 85k, which are you going to pick provided they don’t have to be on site?

The market can and does adjust itself for efficiency and the only way high cost places will be able to maintain their tax base as telecommuting becomes more accepted and easy is through direct government intervention which in this case would seemly limit competition, stifle innovation, and shrink the pool of qualified candidates since no one would willingly choose to be taxed twice.

]]> By: Anonymous http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/comment-page-1/#comment-509 Anonymous Thu, 03 Nov 2005 07:16:37 +0000 http://s194721765.onlinehome.us/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/#comment-509 As for living in one state and working in another, it depends. I lived in PA and worked for a while in NJ, and those two states have a reciprocal agreement so that you only pay taxes in one of them. I think a lot of states that border one another have that kind of agreement, but I'm not sure. As for living in one state and working in another, it depends. I lived in PA and worked for a while in NJ, and those two states have a reciprocal agreement so that you only pay taxes in one of them. I think a lot of states that border one another have that kind of agreement, but I’m not sure.

]]> By: breichelt http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/comment-page-1/#comment-508 breichelt Wed, 02 Nov 2005 18:11:45 +0000 http://s194721765.onlinehome.us/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/#comment-508 Thats true, I forget that out east people may very well work in one state and live in another, in that situation, do people only pay taxes for the state that they work in? Certainly they dont pay both...... Thats true, I forget that out east people may very well work in one state and live in another, in that situation, do people only pay taxes for the state that they work in? Certainly they dont pay both……

]]> By: johnpapa http://benreichelt.net/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/comment-page-1/#comment-507 johnpapa Wed, 02 Nov 2005 18:03:29 +0000 http://s194721765.onlinehome.us/blog/2005/11/02/another-reason-to-not-telecommute-from-an-employees-perspective/#comment-507 Yes, that is a very good point. My employer is in Florida (no state tax) and I live in NY (state tax exists), so I am taxed by NY only. But it can hurt you if you live in Mass and work in NY. So it can be tough for people who physically cross borders too. Yes, that is a very good point. My employer is in Florida (no state tax) and I live in NY (state tax exists), so I am taxed by NY only. But it can hurt you if you live in Mass and work in NY. So it can be tough for people who physically cross borders too.

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