A new Pennsylvania law that has passed the state House and Senate will allow employers to keep part of the money their workers pay for income taxes.
Reported by Philadelphia’s City Paper the law is meant as a tax incentive that will lure software company Oracle to Pennsylvania. Officials hope other tech firms will follow suit and hire more workers in the state. Oracle is expected to bring with it 250 new jobs.
The plan would allow companies to keep 95% of workers’ withheld income taxes instead of sending that money off to the state treasury.
According to the Philadelphia Inquirer the bill is meant to spur job creation. Opponents of the bill suggest that a general tax reduction for all businesses would make more sense.
Daniel Denvir mocks the bill and its “job creator” roots:
“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.”
Corporations will be capped at $5 million per year and the program is only set through 2018.
Governor Tom Corbett has not officially said he will sign the bill into law.
To quality for the income tax program companies will need to hire at least 250 full time employees, provide them with health insurance and pay more than the average wage currently offered to workers in Pennsylvania county.
Do you think this income tax rebate is a good idea for companies and the state of Pennsylvania or will it fall flat by 2018?