Corporate Taxes

Corporate Tax LoopholesIssue Spotlight: Closing Corporate Tax Loopholes

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.

2013-14 Tax Code Analysis: Read PBPC's Analysis of the PA Tax Code Bill

Combined Reporting of State Corporate Income Taxes: Read ITEP's Primer

Browse Corporate Tax Publications Below

(HARRISBURG, PA) June 27, 2015 – Mark Price, research director of the Pennsylvania Budget and Policy Center,* issued the following statement in response to House Bill 1192, the General Appropriations bill, which the Pennsylvania House of Representatives is debating today:

“This budget is essentially Gov. Corbett’s fifth budget. It resurrects a failed, cuts-only approach to the budget that has been discredited by Pennsylvania’s experience over the last four years, in the vain hope that by doing the same thing again we will produce a different outcome. Pennsylvania’s recent poor economic performance can be directly attributed to this failed approach.

Instead, I encourage members of the General Assembly to look at the latest polls to see what’s important to Pennsylvania voters. Voters want to see restoration of education funding, property tax relief and a tax on drilling.

Gov. Wolf has proposed a severance tax on the extraction of natural gas in Pennsylvania to provide funding for public schools. Lawmakers in both parties have introduced severance tax bills every year since 2009, and every year the gas drillers have successfully fought the tax, spending $46.8 million on lobbying since 2007.  Much of the industry’s lobbying money has gone into manufacturing a narrative, built on a foundation of myths, about the economic benefits of drilling and the fragility of the industry.

One critical value that should guide tax policy in our view is “revenue adequacy” – having enough revenue to invest in essential public goods, starting with education, and in services critical to quality of life for middle‐ and low‐income families.

General Fund revenue collections exceeded official revenue targets by just under $50 million in May. This pushes the fiscal-year-to-date revenue surplus to $619 million, or 2.3% above estimate. While revenues exceeding estimate are a good signal that the economy is doing better than expected, the 2014-15 surplus is unlikely to have the positive impact on the 2015-16 budget that one would normally expect.

"Pennsylvania is now the second largest natural gas producer in the country," testified Research Director Michael Wood before a Senate Joint Committee,"and it is time to end the excuses and enact a real severance tax."  

This is PBPC's press statement on the Independent Fiscal Office Initial 2015-16 Revenue Estimate and how it relates to efforts to increase education funding and fix the commonwealth's structural deficit.

April collections were higher than expected, pushing the state's revenue surplus in 2014-15 to over $500 million. This piece takes a closer look at what this means for next year's budget and the state's ongoing structural deficit.

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