The tax code bill enacted along with the 2013-14 state budget maintained Pennsylvania's capital stock and franchise tax, which was set to expire in 2014, for two more years. It also took a small, first step to close the Delaware loophole, which has allowed large multi-state corporations to avoid paying income taxes in Pennsylvania. No tax code bill was passed as part of the 2014-15 budget.
The Pennsylvania House recently approved a variety of amendments to House Bill 377, which will have a significant impact on state government revenues over the next few years. View a table detailing the impact.
Pennsylvania has a famously antiquated corporation tax system. The end result is a system that is both unfair to some businesses and sufficiently porous to leave individuals paying a growing share of total state revenues.