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Pennsylvania May Force Employees to Pay State Income Taxes to Employers

If put into law, Pennsylvania bill HB 2626 would give large companies 95 percent of their workers’ state income taxes, while the state of Pennsylvania would only get 5 percent.

This new corporate welfare tax structure is designed to lure out-of-state companies such as  California-based Oracle to Pennsylvania, reports The Philadelphia Inquirer.

The bill passed on October 17 with bipartisan support. If signed by Governor Tom Corbett, the new law would allow some companies to take in as much as $5 million of their employees’ income taxes every year.

To qualify for this financial windfall, employers would have to hire 250 or more new full time employees, provide health insurance and pay more than the average wage for that Pennsylvania county, reports

A spokesperson for Gov. Corbett told The Philadelphia Inquirer that the bill was “still under review.”

There has been no plan suggested for how Pennsylvania would provide state services based on such a drastic cut in revenue, if the bill becomes law.


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