House Bill 2626 would provide profitable corporations a new tax credit just for filling a vacant position without creating any new jobs. It is an ill-conceived program, enacted in haste, that will make it harder for Pennsylvania to maintain a balanced budget.
Read PBPC’s Top 10 Reasons to Vote No on HB 2626
HARRISBURG, PA (October 15, 2012) — Sharon Ward, director of the Pennsylvania Budget and Policy Center, issued the following statement on state House passage of HB 2626, a bill that allows certain companies to keep new employees’ personal income tax withholdings:
“Today the House has taken the unprecedented step of passing a bill that creates a costly new program outside of the budget process. House Bill 2626 would provide profitable corporations a new tax credit just for filling a vacant position, without creating any new jobs. It is an ill-conceived program, enacted in haste, that will make it harder for Pennsylvania to maintain a balanced budget.
“Credible studies have shown that most new jobs are created by existing companies, rather than interstate transplants. The program authorized by HB 2626 is notorious for misuse by states that lure companies a few miles across a state border without creating new jobs. Pennsylvania can ill afford another opportunity to let companies game the tax system. The Senate should reject this bill.”