If the State of Pennsylvania has its way, soon injured workers, and others who badly need legal services, will have to pay tax on top of those legal services. We find this to be a totally unnecessary kick in the pants to the entire labor market by a government who it would seem no longer cares about the average tax payer. Senate Bill 76, if enacted, would place a tax on those who can least afford it.
First an employee gets injured and has to deal with the pain, and disability, often following a work injury. Soon thereafter, especially if the entitlement to workers’ comp benefits is contested, the injured worker begins to suffer desperate financial harm. To have the best chance of succeeding, the injured worker often has to hire an attorney.
Once the injured worker waits what can be a year, or more, while a case winds its way through the PA workers’ compensation system, he or she may be successful in the litigation. Typically, an attorney in Pennsylvania receives a fee of 20% of the benefits due to the injured worker. If Senate Bill 76 is passed, the injured worker would have to then pay taxes, of 7% or more, on those legal services, further depleting the recovery.