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.
“Financing long-term road improvements with long-term bonds means that drivers, long distance truckers, and all businesses that profit from a good transportation system will contribute to the roads they are using now and 15 years from now,” said PBPC Director Sharon Ward.
State business taxes "are just a lot less important" than business climate rankings imply, writes Billy Hamilton in State Tax Notes. "Those rankings aren't put together with the states' best interests in mind."
“There is little to celebrate in this budget," says PBPC Director Sharon Ward. "It fails to adequately address the enormity of the funding crisis facing Pennsylvania schools. 80 percent of the cuts to classrooms are left intact, and that means higher property taxes and even larger class sizes in our schools.
As the clock ticks toward a new state budget, lawmakers and Gov. Tom Corbett have turned their attention once again to closing loopholes. Unfortunately, lawmakers are under heavy pressure from the business community to water the plan down, and that could mean Pennsylvania ends up with a law that protects loopholes, rather than closing them.