Pennsylvania may force workers to pay taxes to their employers
Source: Rawstory.com
A bill that landed on Pennsylvania Gov. Tom Corbetts (R) desk this week would give companies that hire more than 250 new workers a gobsmacking tax incentive: 95 percent of those workers state income taxes would be paid to the employer, and not the state.
Its a bizarre strategy meant to attract companies from other states, specifically designed to lure California-based software maker Oracle into Pennsylvania. Its also, as Philadelphia City Paper put it, lavish corporate welfare writ large across state government.The bill, HB 2626, passed on October 17 with bipartisan support. Just 80 members of Pennsylvanias House of Representatives, most of the Democrats, voted in opposition.
Employers that hope to take advantage of the incentive program must hire 250 or more new full time employees and provide health insurance for them, in addition to paying a wage thats above the county average wherever theyre located. Once those conditions are met, the proposed law would allow companies to absorb as much as $5 million of their employees income taxes every year.
As state struggle with one another in an effort to lure companies with special tax rates and incentives, millions are given away every year to thousands of companies that otherwise earn more than enough to continue being profitable.
Read more: http://www.rawstory.com/rs/2012/10/24/pennsylvania-may-force-workers-to-pay-taxes-to-their-employers/
drm604
(16,230 posts)It ends up being a race to the bottom for state's revenue.
docgee
(870 posts)They're going to pay employees extra and then take it back? They will still have to pay a competitive wage after taxes and kickback. It is just a tax break for big companies.
CrispyQ
(36,527 posts)leftyohiolib
(5,917 posts)funding .
drm604
(16,230 posts)This can only be stopped at the federal level.
liberal N proud
(60,346 posts)but OK to get them tax revenues directly from employees of that company?
I guess it eliminates the middle man!
bucolic_frolic
(43,311 posts)I'd be furious to know my taxes were being paid directly to my employer.
I work to pay for roads, and police, and firefighters, and care of children and
eldercare
Not for corporate welfare.
This is an outrage against decency.
dmr
(28,349 posts)Isn't that stealing from all the other taxpayers?
classykaren
(769 posts)Some one told me they are getting rid of most of their local Police Departments for just the State Police to break up the Police Union .I live in Florida and have been waiting for the day I could move back to my liberal state of Pennsylvania. Who is so stupid to want to turn Pennsylvania into Florida? I thought our Teabagger Governor was just the pitts.
RobinA
(9,894 posts)is not a good state. It's better than some, but by no means "good."
EC
(12,287 posts)Shouldn't pass muster. Bad scheme.
RedCloud
(9,230 posts)obamanut2012
(26,142 posts)Who was having to do this, I would be PISSED! State taxes are supposed to go to into resources for the citizens of that state.
How is this even legal?
melissaf
(379 posts)Corbett is trying to get parents of special needs children, who are covered by medical assistance no matter what the parents' income, to pay a premium for their kids' medical assistance. This will save the state a whopping $4 million a year.
Darn freeloading special needs kids...
Scuba
(53,475 posts)I do my best.
Divernan
(15,480 posts)Adding insult to injury, most of those workers will be hired from out of state so the companies won't have to invest in training locals. The Pittsburgh "international" airport just announced a daily flight between Pittsburgh and Houston, Texas to accommodate all the traveling gas field workers coming into southwestern PA and West Virginia.
davidthegnome
(2,983 posts)Wow. Seems kind of stupid to me.
bemildred
(90,061 posts)The government is just a conduit for public money to corporations anyway these days.