SCRANTON TIMES-TRIBUNE Editorial: …Under a bill proposed by state Rep. Kerry Benninghoff, a Centre County Republican and chairman of the House Finance Committee, workers for companies that relocate to Pennsylvania would pay the state income tax through payroll deduction. But the companies that collect it would be allowed to keep 95 percent of the money rather than turn it over to the government.
State Rep. Scott Boyd, a Lancaster County Republican, said he would propose expanding the Promoting Employment Across Pennsylvania deal to all employers who add jobs.
The sponsors’ rationale is that the state government would not forfeit any revenue by allowing employers to keep income taxes paid by new employees, but would forgo some new revenue.
Well, how about in the case of an employer that creates a subsidiary and transfers half of an existing workforce to the “new” company, creating “new” jobs and getting back 3.07 percent – the personal income tax rate – of those employees’ wages? Who knows how many other ways there are to exploit such a tax scheme?… (more)
Wow, the Scranton Times is against government stimulus. Who would have thunk it.