Posts Tagged ‘stealing employee wages’


The PITs: Broke states give your income taxes to employers!

Tuesday, November 6th, 2012

Just when you thought government couldn’t cower more in servility to corporations … economist David Cay Johnston included in his blog and new book, The Fine Print: How Big Companies Use “Plain English” to Rob You Blind, a report called Paying Taxes to the Boss from the nonprofit organization, Good Jobs First.

If the practice of allowing employers to withhold state income taxes from workers and to KEEP the funds for themselves doesn’t outrage you about your state government, nothing will. Here’s the story as told in the report written by Philip Mattera, Kasia Tarczynska, Leigh McIlvaine, Thomas Cafcas and Greg LeRoy at Good Jobs First.

States offer corporations inducements to do business in their state. Land use without taxes is common. Southern states boast about their “right to work” status, luring employers with low non-union wages considered sufficient for their sons and daughters. Sports teams enjoy stadiums built with taxpayer money despite owners being billionaires. Cities allow corporations to run their parking meter business in exchange for pennies on the dollars earned into the infinite future. But this latest tack is a doozy by comparison.

It is called Private Income Tax (PIT) diversion. Sixteen states have a total of 22 laws they have enacted to allow EMPLOYERS — not the broke, insolvent state government — to withhold state income taxes from employee paychecks and to keep all or some portion of the funds for many many years into the future.

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Posted in Commentary by G. Namie, Employers Gone Wild: Doing Bad Things, Fairness & Social Justice Denied | 5 Archived Comments | Post A Comment () »



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