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Monday, April 30, 2012

Johnston: More Companies Pocket Workers' State Income Taxes

Following up on my prior posts, 16 States Let Companies Keep Billions of Their Workers' Taxes:

http://taxprof.typepad.com/taxprof_blog/2012/04/johnston.html

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Comments

How does the amount of tax retained by corporations, which provide jobs, compare to the taxes taken by individuals on welfare, who produce no jobs?

Posted by: Woody | Apr 30, 2012 11:46:44 AM

This has been addressed before, but DCJ is being even more dishonest than usual. Corporations are not "pocketing their workers' taxes." This is simply an incentive provided by the state to those companies, no different than an abatement or a credit. Money is fungible, it does not matter what the source is once the state decides to provide an incentive to corporations.

In fact, this is the most desirable and efficient of all state tax incentives (ignoring the broader argument as to whether such incentives are desirable at all), because it cuts out the waste of a government bureaucrat processing the taxes before sending them back to the corporation.

Posted by: Todd | May 1, 2012 9:23:01 AM