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
IFO report predicts proposed severance tax would make up for cut in state corporate income tax rate

IFO report predicts proposed severance tax would make up for cut in state corporate income tax rate

A recently released Independent Fiscal Office review of Governor Tom Wolf’s 2018 budget analyzed three marquee proposals found within — a cut in the state’s corporate net income tax, a natural gas severance tax and raising the minimum wage to $12.00.

Taken together, the IFO predicted an average annual gain of $418 million each year in state revenue, which peaks in the early 2020s before falling down by 2023.

Friday, April 20, 2018/Author: Stephen Caruso
Categories: News and Views
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