Bill would let some firms keep Pa. payroll taxes

HARRISBURG, Pa. -- Certain employers that hire new workers in Pennsylvania would get to keep 95 percent of the state income tax withheld from the workers' paychecks under a bill moving quickly through the state House of Representatives.

The bill sponsored by Republican Rep. Kerry Benninghoff was awaiting final action in the chamber Wednesday.

It was designed as an incentive to attract companies from outside the state before it was amended to include in-state companies.

Participating employers would give the state only 5 percent of the income-tax payments for five to 10 years depending on the number and location of the jobs.

The Pennsylvania Budget and Policy Center, a liberal think tank, is urging lawmakers to reject the bill because it would be expensive and would duplicate existing job-creation tax credits.