Sonny Bono: “Mr. Speaker, the right of States to tax economic activities within their borders is a key feature of federalism rooted…”

“Mr. Speaker, the right of States to tax economic activities within their borders is a key feature of federalism rooted in the Constitution and long recognized by Congress. State taxing power is not absolute, however, and Congress and the courts protect residents from State taxes that discriminate against nonresidents and unduly burden interstate commerce. Interstate transportation workers derive their income in multiple States in the course of regularly assigned duties. Through a patchwork of legislation spanning nearly three decades, Congress has exempted interstate rail, motor, and air carriers from having to pay income taxes in more than one State by making the income of these workers taxable only in the worker's State of residence. While these workers have escaped the onerous burden of multiple taxation, Congress has failed to provide similar relief to interstate water workers. Under current law, interstate water workers may be taxed in both their State of residence and in any State in which they derive 50 percent or more of their income. This taxing requirement has had an acute impact on waterway workers who reside in Washington but work along the Columbia River in the Pacific Northwest.”