BOSCOLA WANTS TO REPEAL INCREASE IN OCCUPATIONAL PRIVILEGE TAX
Senator receives copy of one worker’s paycheck for “zero dollars” because of $52 deduction

BETHLEHEM (Feb 9) – State Senator Lisa M. Boscola never liked the occupational privilege tax when it was a $10 “nuisance tax.”  Now that local municipalities have increased the OPT to $52, Boscola likes it even less—and wants to repeal it as soon as possible.

This week, she introduced legislation in the State Senate to do just that.  Her bill would reduce the Emergency and Municipal Services (EMS) Tax (formally known as the Occupational Privilege Tax) from $52 back down to $10.

“Last year, the State Legislature turned a $10 nuisance tax into a big pain in people’s paychecks,” Boscola said.  “It’s wrong to punish people who work hard every day.  Workers already have too many taxes taken out of their paycheck.  Pretty soon there won’t be any take home pay left to take home.”

What started out as a proposal to bail Pittsburgh out of bankruptcy turned into a windfall of tax revenues for municipalities all across the Commonwealth who couldn’t wait to raise the OPT to $52, she said.

Boscola voted against the measure last year and said that if just two other Senators had also voted against it, the bill wouldn’t have passed.

“You don’t raise taxes on working people who are only making minimum wage,” Boscola said.  “I just received a letter from a high-school student who is working two part-time jobs to save money so she can pay for college.  She recently received a paycheck for $0!  That’s because they took the $52 occupational privilege tax—and other taxes—out of her gross earnings and that left her with nothing to take home!”

Last November, lawmakers passed a bill to allow — not to force — local municipalities to raise the “occupational privilege tax,” if needed, from $10 to a maximum of $52.  Local officials, according to Boscola, quickly decided that the new tax “needed” to be set at $52 because that would generate the most new revenue.

“When this tax increase passed last year, a lot of my colleagues brushed it off and said it was only a couple of dollars,” Boscola said.  “But, I know that a couple of dollars here and a couple of dollars there add up real fast.  Before you know it, your paycheck is a couple of dollars short every week and you can’t pay your other bills.”

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