A bill to amend title 5 of the United States Code to provide for the collection of State taxes by the withholding, by Federal agencies, of State taxes from the pay of Federal employees if a State provides that any employee may voluntarily elect the withholding.

Requires the Secretary of the Treasury to enter into agreements providing for the withholding of State income taxes from the pay of Federal employees with States which impose a duty on employers generally to withhold and make returns of sums to State taxes, for any employee who elects.