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meegbear

(25,438 posts)
Wed Oct 24, 2012, 01:45 PM Oct 2012

Pennsylvania may force workers to pay taxes to their employers

Source: Rawstory.com

A bill that landed on Pennsylvania Gov. Tom Corbett’s (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.

It’s a bizarre strategy meant to attract companies from other states, specifically designed to lure California-based software maker Oracle into Pennsylvania. It’s 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 Pennsylvania’s 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 that’s above the county average wherever they’re 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/



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Pennsylvania may force workers to pay taxes to their employers (Original Post) meegbear Oct 2012 OP
Companies playing states against each other for incentives. drm604 Oct 2012 #1
I don't get it. docgee Oct 2012 #2
I don't get it either. CrispyQ Oct 2012 #15
bernie sanders said he was working on legislation that says if states do that they lose some federal leftyohiolib Oct 2012 #3
I like this. drm604 Oct 2012 #4
Let me get this straight... It is wrong for the government to subsidize business liberal N proud Oct 2012 #5
The worst continues. bucolic_frolic Oct 2012 #6
The state is so flush it can afford this? dmr Oct 2012 #7
Why does a good state like Pennsylvania want to be like Florida classykaren Oct 2012 #8
Pennsylvania RobinA Oct 2012 #10
That amounts to a bribe for your job. EC Oct 2012 #9
When taxes are a make or break issue, salaries are pathetic. RedCloud Oct 2012 #11
If I was an employee who was also a taxpayer of PA obamanut2012 Oct 2012 #12
Meanwhile, melissaf Oct 2012 #13
+1,000 for the effective use of sarcasm. Scuba Oct 2012 #14
Thanks. melissaf Oct 2012 #17
Lure Oracle my ass! This is to benefit Gov. Corbett's Big Fracking corporate sponsors/donors. Divernan Oct 2012 #16
So the state is going to willingly give up revenue? davidthegnome Oct 2012 #18
Privatizing the tax system. bemildred Oct 2012 #19
Fascism - full circle Kindly Refrain Oct 2012 #20

drm604

(16,230 posts)
1. Companies playing states against each other for incentives.
Wed Oct 24, 2012, 01:59 PM
Oct 2012

It ends up being a race to the bottom for state's revenue.

docgee

(870 posts)
2. I don't get it.
Wed Oct 24, 2012, 02:00 PM
Oct 2012

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.

 

leftyohiolib

(5,917 posts)
3. bernie sanders said he was working on legislation that says if states do that they lose some federal
Wed Oct 24, 2012, 02:00 PM
Oct 2012

funding .

liberal N proud

(60,334 posts)
5. Let me get this straight... It is wrong for the government to subsidize business
Wed Oct 24, 2012, 02:07 PM
Oct 2012

but OK to get them tax revenues directly from employees of that company?

I guess it eliminates the middle man!

bucolic_frolic

(43,161 posts)
6. The worst continues.
Wed Oct 24, 2012, 02:07 PM
Oct 2012

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.

classykaren

(769 posts)
8. Why does a good state like Pennsylvania want to be like Florida
Wed Oct 24, 2012, 02:37 PM
Oct 2012

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.

obamanut2012

(26,076 posts)
12. If I was an employee who was also a taxpayer of PA
Wed Oct 24, 2012, 04:35 PM
Oct 2012

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)
13. Meanwhile,
Wed Oct 24, 2012, 04:47 PM
Oct 2012

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...

Divernan

(15,480 posts)
16. Lure Oracle my ass! This is to benefit Gov. Corbett's Big Fracking corporate sponsors/donors.
Wed Oct 24, 2012, 08:40 PM
Oct 2012

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.

bemildred

(90,061 posts)
19. Privatizing the tax system.
Thu Oct 25, 2012, 09:18 AM
Oct 2012

The government is just a conduit for public money to corporations anyway these days.

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