PA Workers Could Soon Pay Taxes ... to Employers

Proposed law is meant to lure big companies
By Evann Gastaldo,  Newser Staff
Posted Oct 24, 2012 2:20 PM CDT
Pennsylvania Gov. Tom Corbett in a file photo.   (AP Photo/Matt Rourke)

(Newser) – A new Pennsylvania law—which has already passed the state House and Senate, but has not yet been signed by the governor—would force some employees to pay taxes to their employers, Philadelphia's citypaper reports. The law is a tax incentive attempting to lure software company Oracle to Pennsylvania; it states that any company hiring at least 250 new workers in the state can keep 95% of those workers' withheld income taxes rather than sending the money off to the state treasury, the Philadelphia Inquirer reports.

Supporters say the bill will spur job creation, but opponents say general tax reductions for all businesses are a better idea. In citypaper, Daniel Denvir sums it up thusly: "Your taxes would get withheld by your boss like normal, but they would then keep them and spend it on private jets or monogrammed bathroom fixtures or whatever." But the Inquirer points out that the amount companies can keep is capped at $5 million, the program expires in 2018, and it's not even clear Gov. Tom Corbett will sign. (Read more Pennsylvania stories.)

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