The Pennsylvania Senate is considering a bill to exempt the sale or lease of private and corporate aircraft from sales tax. The Department of Revenue estimates the first year cost of the exemption at $9.8 million.
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.
A bill to establish a Pennsylvania Earned Income Credit (EIC) is scheduled for a vote in the Pennsylvania House this week. House Bill 377 would create a state EIC set at 15% of the federal Earned Income Tax Credit beginning in Tax Year 2008 and 30% of the federal credit beginning in Tax Year 2009 and beyond.
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.