Stan Arnold Provides Testimony to United States Congress

Testimony to Judiciary Subcommittee on H.R. 4019, urging Congress to clarify that states may not tax retirement income of nonresident partners.
December 13, 2005
Washington, DC

On December 13, 2005, Stan Arnold (Senior Tax Advisor for Rath, Young and Pignatelli) testified before the Subcommittee on Commercial and Administrative Law of the House Judiciary Committee on H.R. 4019. Arnold appeared before the Committee representing the firm's client, PriceWaterhouseCoopers. Arnold testified that Congress should enact legislation clarifying that 1995 federal legislation prohibits state taxation of retirement income earned by non-resident partners.

Arnold said:

"H.R. 4019 is not a “states’ rights” issue. Congress decided back in 1995 that it was appropriate for it to assert its Commerce Clause authority. We are now asking that Congress clarify its intention to prevent states from taxing all nonresidents on their retirement income. This clarification would of course have the same effective date as the original legislation. This is an issue of whether or not citizens should be able to rely on the actions of Congress when it decides to resolve a state tax issue. This is about the stability of the tax system and the unwritten agreement between citizens and government to minimize compliance burdens."

The Subcommittee later voted to recommend the enactment of the legislation, subject to clarifying the language of the bill before the full Judiciary Committee.

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Founded in 1987, Rath, Young and Pignatelli was one of the first law firms in New England to recognize the importance of merging traditional law firm practice areas with legislative and public policy expertise. Through offices in New Hampshire and Boston, Rath, Young and Pignatelli serves domestic and international clients with the firm’s sophisticated legal expertise and commitment to achieving client success.