In a letter to the Rutland Vermont Herald, a teleworker who resides in the state and serves customers in the Washington DC area says “If you had more access to High Speed Internet, a lot more teleworkers would move here! Duh!”
He raises an interesting point… that there’s an undeniable trend towards telework. But that most governments are behind in responding to it and the high talk really lacks specifics.
One of the problems is that governments are greedy. New York state wants teleworking employees to pay New York State income tax even if they live in another state most of the time and that state, of course, wants the teleworker to pay their taxes. That’s just wrong…not to mention stupid and short sighted.
High tax states are going to be the big losers. If, for example, a New York company wants to hire teleworkers and New York makes it difficult, there’s nothing to stop the company from opening a small office in a low tax state and “hire” the employees from there. Or just hire them through an out of state employment agency.
It all depends on the availability of high speed internet in the low tax states though and a plan to encourage teleworking.