[Congressional Record Volume 140, Number 43 (Tuesday, April 19, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 19, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      TAX RELIEF FOR HOME WORKERS

                                 ______


                          HON. SAM COPPERSMITH

                               of arizona

                    in the house of representatives

                        Tuesday, April 19, 1994

  Mr. COPPERSMITH. Mr. Speaker, today, I introduced the Home Worker Tax 
Relief Act of 1994, a bill to assist and encourage businesses of all 
sizes, as well as the self-employed, a bill that also will promote 
family-supportive and environmentally friendly schedules and 
workplaces. This bill helps meet these goals by allowing people who 
work out of their homes to deduct home office expenses, including 
telecommuting expenses, from their Federal income taxes.
  Current tax law treats the rapidly increasing number of people who 
work out of their homes unfairly. The business environment has changed, 
and we need the tax system to reflect these changes.
  This bill allows people who work in their homes to deduct the costs 
of necessary office equipment as a business expense. Last year, in 
Commissioner versus Soliman, the U.S. Supreme Court placed severe 
limitations on the home office deduction, essentially making it 
unavailable to most home workers. This bill restores and expands 
slightly the prior tax deduction for the portion of a home where the 
taxpayer works.
  This bill also breaks new ground in encouraging the work schedules 
and workplaces of tomorrow by encouraging telecommuting--working 
through a modem instead of using a car. The Home Worker Tax Relief Act 
of 1994 allows individuals who work at home to deduct a proportionate 
amount of the equipment they use to telecommute, such as fax machines, 
computers, and modems.
  Telecommuting offers many additional benefits, both to individuals 
and the country. Telecommuting lets individuals take advantage of the 
recent dramatic advances in telecommunications to improve their quality 
of life. Employees who work from home have both more flexible work 
schedules and more time to spend with their families. Instead of 
driving a car to work, one can simply turn on a computer and spend the 
time with one's family instead of in traffic.
  Telecommuting also helps the environment. Auto emissions represent 
the greatest source of air pollution. Telecommuting reduces auto 
emissions by taking people off the road and can reduce both the costs 
of maintaining heavily traveled roads and the need to build new roads 
to handle the traffic demand at peak hours.
  Employers as well as employees stand to gain from telecommuting. 
Studies consistently show that telecommuting increases worker 
productivity. Moreover, this legislation could particularly benefit 
small startup firms that could allow telecommuting but simply cannot 
afford to make the investment in additional computer equipment. This 
bill allows employees to purchase equipment for use in their homes. The 
employees benefit from having flexible schedules, while the employer 
benefits from the employees having additional resources the business 
could not afforded.
  Mr. Speaker, this legislation provides needed assistance to small 
business and to the self-employed while reducing air pollution. It 
allows workers to use existing technology to have more flexibility, 
increased productivity, and more time with their families. The 
technology for the workplace and schedules of tomorrow has arrived. 
Today, in Congress, we can make sure our tax laws keep pace.

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