HARRISBURG PA – Only a day after a lawmaker proposed a sweet deal for out-of-state business thinking about locating in Pennsylvania, legislators say they may be ready to expand the program, according to The Pennsylvania Independent online news service.
The Promoting Employment Across Pennsylvania (PEP) proposal would let qualified companies that are moving into Pennsylvania keep 95 percent of personal income taxes their employees pay. The commonwealth would collect the remaining five percent.
Pennsylvania has a flat personal income tax rate of 3.07 percent of a person’s gross wages, so an employee earning $30,000 a year would pay $921 in state income tax. Of that, under the proposal, $874 would be kept by the employer as its incentive for bringing jobs here, and the state would keep the other $47.
The House Finance Committee moved the legislation, House Bill 2626, on Tuesday (Sept. 25, 2012), and it was introduced in the House, The Independent reported.
Bill sponsor and House Majority Committee Chairman state Rep. Kerry Benninghoff, R-Centre, said PEP is a way to get new businesses into Pennsylvania, in the face of the high unemployment numbers and a desire to aggressively recruit business. “This is about whether or not Pennsylvania is on the short list” of employer relocation choices, he said.
But some representatives said they were uneasy about what the bill means for employees.
- Read a story by reporter Melissa Daniels, titled “Income tax jobs incentive could go to even more businesses” and published Tuesday by The Independent, here.
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