Across the United States more than 2,700 companies are collecting state income taxes from hundreds of thousands of workers – and are keeping the money with the states’ approval, says an eye-opening report published on Thursday.The report from Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations, identifies 16 states that let companies divert some or all of the state income taxes deducted from workers’ paychecks. None of the states requires notifying the workers, whose withholdings are treated as taxes they paid.
This bribing companies to stay in or relocate to a particular state is galling enough but to use what employees believe are taxes they pay to the state to fund these bribes is immoral. No wonder state governments are always crying poverty and asking us to pay even more.
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