Closing the loophole: Why some businesses pay less in corporate taxes and how Democrats want to fix it

Closing the loophole: Why some businesses pay less in corporate taxes and how Democrats want to fix it

Currently, businesses and corporations in Pennsylvania can shift their earnings to states with lighter tax burdens to pay less in corporate net income taxes.

 

It’s a strategy that is commonly referred to as the “Delaware loophole” since Delaware does not levy a corporate net income tax on business subsidiaries holding intangible assets. This allows multi-state businesses to transfer money to their Delaware-based subsidiary through transactions and other maneuvers to avoid paying the CNIT in other states, including Pennsylvania.

Wednesday, July 17, 2019/Author: Justin Sweitzer
Categories: News and Views
Democrats preparing new ‘Fair Share Tax Plan’ that would reform personal income tax

Democrats preparing new ‘Fair Share Tax Plan’ that would reform personal income tax

Pennsylvania Democrats are planning to unveil a tax reform proposal that would cut taxes for a majority of Pennsylvanians and raise over $2 billion in new revenue, all while working around the state constitution’s uniformity clause that prohibits progressive income taxes on state residents.

The proposal, called the “Fair Share Tax Plan,” would split the state’s personal income tax into two parts — a tax on wages and tips and a tax on wealth. House Democrats introducing the proposal want to reduce the personal income tax on wages and tips from 3.07 percent to 2.8 percent and increase the personal income tax on wealth — which includes money from interest, dividends, net income, capital gains, royalties, winnings and more — from 3.07 percent to 6.5 percent. 
Thursday, May 2, 2019/Author: Justin Sweitzer
Categories: News and Views
Lawmaker floats proposal to lower state’s personal income tax rate

Lawmaker floats proposal to lower state’s personal income tax rate

Hoping to boost the rate of Pennsylvania’s economic growth, Rep. Jason Ortitay (R-Washington) recently floated a proposal to lower the commonwealth’s personal income tax (PIT) rate from 3.07 percent to 2.82 percent.

 

The proposal comes on the heels of recently enacted federal tax reform that sought to cut taxes for the majority of Americans and spur economic growth, but was also projected to grow the national deficit.

Monday, January 8, 2018/Author: Jason Gottesman
Categories: News and Views
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