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
Progressives call on lawmakers to 'tax the rich'

Progressives call on lawmakers to 'tax the rich'

On Tuesday, a small but vocal group of liberal activists gathered on the steps of the Capitol to advocate for an idea that they believe will improve Pennsylvania’s economic standing — they want to tax the rich.

 

As part of a nationwide “Tax The Rich” bus tour, progressive groups Tax March and MAYDAY America brought their traveling tour to Harrisburg, where they stumped for policies that would raise revenue by increasing taxes on Pennsylvania’s wealthiest citizens and corporations.

Wednesday, July 10, 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
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