A recent post on Web Worker Daily caught my eye and got me thinking about how tax legislation needs to change to accommodate the rising trend of people who work remotely from home through the web. Now that I’m officially a ‘web worker’, any incentive given for telecommuting is welcome news for me.

The post I’m referring to essentially outlines a proposed bill in the USA where employees that telecommute would be eligible for some substantial tax savings every year. I don’t know what the chances of such a bill passing will be, but it does make considerable sense and would be a perfect legislation to be introduced here in Canada as well. The proposed bill in the States includes some important provisions:

• A vastly simplified flat rate home office deduction ($2500 or the profit from your home-based business, whichever is lower), replacing the current complex prorated system that requires exclusive use of part of the home.
• A telecommuting tax credit that gives employers up to $2400 credit for each employee who starts telecommuting during the year.
• An exclusion from employee income of employer-provided telecommuting equipment including computers and broadband access equipment, making such equipment a tax-free fringe benefit.

The benefits of telecommuting are evident: working from home helps the city grow and the environment prosper. With fewer people traveling into the downtown core, there is less stress on roads and civic infrastructure, as well as a lower level of carbon emissions from vehicles. Telecommuting also eliminates the need for expensive office space and the resources required to keep those spaces maintained. The effective web worker will also have a higher level of productivity because they are uninterrupted by the surroundings of the office environment and the need to travel to and from work. This increased productivity would in turn help business profit, which in turn is better for the financial outlook of the city and country.

Taking all this into account, it makes sense to give web workers an incentive to continue with their current working habits and telecommute. Now I just need to find an enterprising MP who might be able to make this reality. Anyone have any suggestions or know a Member of Parliament?