Tax Partner Thomas McGlone wrote about the proposed elimination of tax reciprocity between Pennsylvania and New Jersey, for Philadelphia Business Journal.
Philadelphia Business Journal
New Jersey-based companies may have to offer higher salaries to attract and retain qualified Pennsylvania-based employees. Employers will also need to consider New Jersey’s new 23 cents-per-gallon gas tax, which will eliminate the commuter cost savings that Pennsylvania residents enjoy by purchasing their gas in New Jersey. The long-term impact of this announcement may be that companies looking to relocate or expand in the region will favor Pennsylvania, whereas in the past the personal income tax was not an issue most companies needed to consider, due to the reciprocal agreement.