Over the next nine years, Pennsylvania corporations will see their corporate income tax rate cut in half, as it falls from 9.9% to 4.9%. What will they do with this windfall? Will they reinvest it in the business, will they reward their CEO with another huge raise, will they enrich their stockholders with higher dividends, will they share it with their employees, or will they do some combination of these options?
In relation to employees, will they increase their benefits and/or wages, or perhaps increase their hours worked in order to qualify for fringe benefits? Yes there are some very profitable Pennsylvania corporations that limit the weekly number of hours their employees can work so they don’t become eligible for costly fringe benefits, such as health insurance.
Since the 1950s, unions have seen their membership rolls decline. If these corporations don’t share their good fortune with their employees, don’t be surprised to see an increase in union membership rolls.
David L. Faust, Selinsgrove, Pa.