The article discusses New York’s plan to use artificial intelligence (AI) to identify remote workers who have relocated to lower-tax states while still earning income from New York-based companies. By 2024, New York aims to deploy AI algorithms to analyze various data sources, such as social media posts, cellphone records, and credit card statements, to determine if remote workers have moved out of state. The goal is to ensure that these workers pay the appropriate income taxes to New York, even if they no longer physically reside there. The article highlights concerns about privacy and the potential for AI to make mistakes in identifying individuals’ residency status. It also mentions the broader trend of remote work and the challenges it poses for tax collection by states like New York, which have relatively high income tax rates. The article suggests that other high-tax states may follow New York’s lead in using AI for this purpose.
Source: https://www.businessinsider.com/new-york-using-ai-remote-workers-fleeing-low-tax-states-2024-4