Zoe Lofgren: “many responsibilities have devolved to the States in the last several years. At the same time, there has been less…”

“many responsibilities have devolved to the States in the last several years. At the same time, there has been less assistance from the Federal Government. State governments must deal with each of these new challenges while balancing their budgets every year. Congress should only, with the greatest reluctance, interfere with the prerogative of States to tax economic activity within their borders. The three cases before us, however, present unique, narrowly defined instances in which the equities clearly argue for some relief for the very small number of workers affected. In fact, the very small number of individuals involved here probably have something to do with the fact they have been unable to find relief in the appropriate source, State governments. In each case, a small number of workers enter a Federal facility from their home States. Because these facilities are bisected by State boundaries, their work takes them over the State line and brings them under the taxing authority of the neighboring State. As a result, they must pay income taxes to that neighboring State, even though they never actually use the roads or other State services. Finally, unlike most States, the two neighboring States lack reciprocal tax agreements to give residents the ability not to be taxed by their home State on income taxed in the neighboring State. These are highly unusual cases.…”