Benninghoff Jobs Bill Headed to Governor’s Desk to be Signed Into Law
10/17/2012
HARRISBURG – A bill introduced by Rep. Kerry Benninghoff (R-Centre/Mifflin) that would simultaneously promote job creation in Pennsylvania while also bringing in additional revenues for the Commonwealth and local governments without increasing taxes is headed to the governor’s desk to be signed into law.

“This plan will help employers create good-paying jobs with quality health benefits for Pennsylvania workers,” Benninghoff said.

Benninghoff’s House Bill 2626 – better known as PEP!, or Promoting Employment across Pennsylvania – would allow qualifying employers to keep 95 percent of the state Personal Income Tax revenues they would otherwise remit to the Commonwealth on behalf of their new workers.

“This is a new approach to job creation,” Benninghoff said. “In the past, ‘economic development’ meant taking tax money from a bunch of taxpayers and handing it over to a specific company. Politicians traveled the state handing out taxpayer-financed, oversized cardboard checks to corporations. This new approach calls for allowing employers to keep some of the dollars they would otherwise remit to the Commonwealth. Rather than redistributing funds from taxpayers to companies, it would allow employers to keep the money they would otherwise send to Harrisburg. They will be able to keep those revenues for the purpose of creating additional jobs.”

To qualify for PEP!, an employer would have to create at least 250 new jobs in Pennsylvania within five years. At least 100 of those new jobs would have to be created within two years.

The new employees would have to be paid wages that meet or exceed the average pay of workers in the county in which the jobs are being created. The company also would have to provide health care benefits for the new workers and cover at least 50 percent of the premium for that benefit.

The bill includes provisions to ensure companies enrolled in PEP! are complying with the rules. It also empowers the Commonwealth to recoup some of the incentive if the company fails to follow the rules.

“Employers will have some skin in the game,” Benninghoff said. “If they don’t create the jobs, they won’t qualify for the incentive.”

The newly created jobs would add to state and local revenues through the state sales tax, local income taxes and property taxes.

The employers would continue to pay other taxes – including the state Corporate Net Income Tax (CNIT), Capital Stock and Franchise tax and sales tax in addition to local taxes – that would help to fund state and local programs and services.

“Failing to enact PEP! would leave us without the new revenues necessary to potentially hire new teachers, police officer and other public servants,” Benninghoff said. “PEP! will not only help create jobs, but it also will generate new local revenues to improve our schools and protect our neighborhoods.”

State Representative Kerry Benninghoff
171st District, Pennsylvania House of Representatives

Contact: Dan Massing
dmassing@pahousegop.com
717.772.9845
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