skip to main content
skip to newscasts

Thursday, March 28, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

The latest on the Key Bridge collapse, New York puts forth legislation to get clean energy projects on the grid and Wisconsin and other states join a federal summer food program to help feed kids across the country.

view newscast page
play newscast audioPlay

Republicans float conspiracy theories on the collapse of Baltimore's Key Bridge, South Carolina s congressional elections will use a map ruled unconstitutional, and the Senate schedules an impeachment trial for Homeland Secretary Myorkas.

view newscast page
play newscast audioPlay

Historic wildfires could create housing and health issues for rural Texans, a Kentucky program helps prison parolees start a new life, and descendants of Nicodemus, Kansas celebrate the Black settlers who journeyed across the 1870s plains seeking self-governance.

Revenue Numbers Stress Bad Timing on Business Tax Cut Bill

play audio
Play

Monday, May 6, 2013   

HARRISBURG, Pa. - A new report from the Independent Fiscal Office reveals a $520 million gap between its revenue projections and Governor Tom Corbett's budget estimates. The Pennsylvania Budget and Policy Center says the report also emphasizes poor timing for a bill backed by Corbett that proposes major business tax cuts.

According to Center Executive Director Sharon Ward, House Bill 440 is touted as a measure to curb companies' abilities to shift profits to low- or no-income-tax states, but it would actually cost Pennsylvania $750 million a year when fully implemented.

"Pennsylvania has cut about $3 billion in corporate taxes just this year in the hopes of creating new jobs, a strategy that has not been terribly successful," Ward remarked. "This new bill would repeat that strategy, creating new tax cuts that would be very costly."

Ward said part of the problem revolves around an "addback rule." She explained that it's meant to close a loophole allowing companies to add back expenses paid to related companies in other states to Pennsylvania taxable income, but it's very weak in this bill and includes a broad exception to the rule.

"Which means that companies will continue to find ways to avoid paying their fair share of taxes and the rest of us will have to pay more," she declared.

Ward said the solution to such loopholes lies in Pennsylvania requiring companies to file a single tax return, meaning businesses can't hide income in other states such as Delaware and Nevada.

"What that means is you've got a more fair tax system, it creates a level playing field for Pennsylvania businesses who are not able to take advantage of loopholes, and it means more money for our schools and less need to raise local property taxes," she stated.

Supporters describe the bill as revenue-neutral tax reform, which closes the Delaware loophole to pay for the new business tax cuts. Ward however said that by 2017-2018, the plan loses almost $2 in tax collections for every dollar in new revenue it generates. This imbalance grows to a loss of $7 for every dollar in new revenue by 2025-2026.

See the complete report from the Independent Fiscal Office at ifo.state.pa.us.




get more stories like this via email

more stories
A report from the Tennessee HealthCare Campaign recommended the federal government needs to strengthen 340B drug pricing and other federal negotiation mechanisms to make needed medicines more readily available and less expensive for hospitals to purchase and administer. (Spotmatikphoto/AdobeStock)

Health and Wellness

play sound

A recent report examined how some rural Tennessee hospitals have managed to stay afloat despite financial challenges. The report includes interviews …


Social Issues

play sound

Michigan recently implemented a significant juvenile justice reform package following recommendations from a task force made up of prosecutors…

Health and Wellness

play sound

Medicare and Medicaid are key sources of health coverage for many Americans and some people qualify for assistance under both programs. With lagging …


Organizations fighting wage theft said it harms affected workers and surrounding communities because the money withheld is not being circulated through the local economy. (Adobe Stock)

Social Issues

play sound

A mix of policy updates and staffing boosts has helped to put wage theft enforcement on the radar in Minnesota, and officials leading the efforts are …

Social Issues

play sound

New research shows more than six in 10 abortions in the U.S. last year were medically induced, and U.S. Sen. Catherine Cortez Masto - D-NV - is …

Social Issues

play sound

Missouri lawmakers are concerned with protecting people from the potential risks of the increasing accessibility of AI-generated images and videos…

Environment

play sound

A farm group is helping Iowa agriculture producers find ways to reduce the amount of nitrogen they use on their crops. Excess nitrates can wind up …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright © 2021