I mean, this would require the federal government to step in and mandate the law, which seems to go against the American idea of smaller governments / letting the state decide. So you really have two options in the situation.
1. Federal government reworks the tax code and removes the ability of the state to control taxes.
2. State government maintains its ability to levy taxes which in turn means companies like Facebook have to know where people are working for the sake of taxation.
If someone chooses to live in a small town in the middle of the rust belt while earning wages far exceeding the local area, why should it be fair for them to avoid paying taxes to a city that likely needs them?
I see 1 being a really hard sell, even if the taxes are just income taxes and not all taxes. While some states don’t have income taxes, I’m sure others rely strongly on them.
In 2, I just thought that while a large company like FB may be able to navigate all the tax and legal implications of having employees in numerous jurisdictions, I wonder if smaller businesses will be able to compete. I mentioned elsewhere that if I sell a digital file online right now to people in four European countries, I have to collect and remit VAT at four different rates, which seems more menacing for smaller orgs than larger ones.
In your last point, I think people would have different opinions on whether it woikd be fair or not. I agree with you in that the wealthy should pay more, especially when the wealth gap is large. I’m not sure if income tax captures it that well, especially for someone who already has the wealth accumulated, and that consumption or property tax might do a better job, but I’m really not sure, I’m no expert in that.
1. Federal government reworks the tax code and removes the ability of the state to control taxes.
2. State government maintains its ability to levy taxes which in turn means companies like Facebook have to know where people are working for the sake of taxation.
If someone chooses to live in a small town in the middle of the rust belt while earning wages far exceeding the local area, why should it be fair for them to avoid paying taxes to a city that likely needs them?