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Wed Oct 24, 2012, 01:45 PM

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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Reply Pennsylvania may force workers to pay taxes to their employers (Original post)
meegbear Oct 2012 OP
drm604 Oct 2012 #1
docgee Oct 2012 #2
CrispyQ Oct 2012 #15
leftyohiolib Oct 2012 #3
drm604 Oct 2012 #4
liberal N proud Oct 2012 #5
bucolic_frolic Oct 2012 #6
dmr Oct 2012 #7
classykaren Oct 2012 #8
RobinA Oct 2012 #10
EC Oct 2012 #9
RedCloud Oct 2012 #11
obamanut2012 Oct 2012 #12
melissaf Oct 2012 #13
Scuba Oct 2012 #14
melissaf Oct 2012 #17
Divernan Oct 2012 #16
davidthegnome Oct 2012 #18
bemildred Oct 2012 #19
Kindly Refrain Oct 2012 #20

Response to meegbear (Original post)

Wed Oct 24, 2012, 01:59 PM

1. Companies playing states against each other for incentives.

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

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:00 PM

2. I don't get it.

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.

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Response to docgee (Reply #2)

Wed Oct 24, 2012, 05:59 PM

15. I don't get it either.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:00 PM

3. bernie sanders said he was working on legislation that says if states do that they lose some federal

 

funding .

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Response to leftyohiolib (Reply #3)

Wed Oct 24, 2012, 02:02 PM

4. I like this.

This can only be stopped at the federal level.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:07 PM

5. Let me get this straight... It is wrong for the government to subsidize business

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

I guess it eliminates the middle man!

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:07 PM

6. The worst continues.

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.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:20 PM

7. The state is so flush it can afford this?

Isn't that stealing from all the other taxpayers?

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:37 PM

8. Why does a good state like Pennsylvania want to be like Florida

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.

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Response to classykaren (Reply #8)

Wed Oct 24, 2012, 02:58 PM

10. Pennsylvania

is not a good state. It's better than some, but by no means "good."

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Response to meegbear (Original post)

Wed Oct 24, 2012, 02:48 PM

9. That amounts to a bribe for your job.

Shouldn't pass muster. Bad scheme.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 03:11 PM

11. When taxes are a make or break issue, salaries are pathetic.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 04:35 PM

12. If I was an employee who was also a taxpayer of PA

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?

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Response to meegbear (Original post)

Wed Oct 24, 2012, 04:47 PM

13. Meanwhile,

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...

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Response to melissaf (Reply #13)

Wed Oct 24, 2012, 05:31 PM

14. +1,000 for the effective use of sarcasm.

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Response to Scuba (Reply #14)

Wed Oct 24, 2012, 09:37 PM

17. Thanks.

I do my best.

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Response to meegbear (Original post)

Wed Oct 24, 2012, 08:40 PM

16. Lure Oracle my ass! This is to benefit Gov. Corbett's Big Fracking corporate sponsors/donors.

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.

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Response to meegbear (Original post)

Thu Oct 25, 2012, 12:58 AM

18. So the state is going to willingly give up revenue?

Wow. Seems kind of stupid to me.

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Response to davidthegnome (Reply #18)

Thu Oct 25, 2012, 09:18 AM

19. Privatizing the tax system.

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

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Response to meegbear (Original post)

Thu Oct 25, 2012, 09:35 AM

20. Fascism - full circle

 

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