The Good Economist August 2016 - Page 7

The Good Economist 7

But deficit reduction, however valuable for state coffers, will prove to be somewhat of a burden on parts of the business community. Companies that use cloud services, such as realtors who access real-time listings and attorneys who rely on Internet court databases, will see price increases as a result of the Netflix tax. Luckily, the new law’s collection requirements don’t include any significantly more arduous responsibilities for businesses, who will be required to collect and remit the new tax to the Pennsylvania Department of Revenue. In addition, the DOR asks that consumers also report the 6 percent tax on their personal income tax return.

No one necessarily expects excitement in the face of a new tax. But despite anticipated reluctance, one should appreciate the broader function of the Netflix Tax: a worthy effort to level the playing field between physical and online markets.

need to know about this emerging policy

For small businesses, where employees often work long hours and are earning more than $455 per week, the proposed rule could be significant. If multiple employees are routinely working beyond normal work hours, overtime pay could reasonably increase personnel expenses.


to Explore paid Family leave program

The U.S. Labor Department announced earlier this month that Pennsylvania will be the recipient of a $1.1 million grant to research the cost of starting a paid family leave program.

Currently, only three states - California, New Jersey, and Rhode Island - guarantee paid family leave for all workers. Each of these programs covers at least four weeks, paying at least 55 percent of employees' fulltime income.

Read more here.