A bill to prohibit a State from imposing a discriminatory income tax on income earned within such State by nonresidents of such State.

Amends Federal law to prohibit any State or local government from imposing a discriminatory income tax on nonresidents who reside in a State that imposes no income tax. Identifies as discriminatory any income tax under which the liability of the nonresident individual with respect to income from transactions or services within the taxing State exceeds the liability that the individual would incur, based on the same income, as a resident of that State.

Exempts from the prohibition any tax enacted prior to 1986.