Posted in: Governor Tom Corbett is proposing a 30% cut to corporate income taxes in his 2013-14 budget plan, along with additional increases in tax write offs for large companies. When fully implemented, the new tax cuts will drain more than $800 million each year from the state budget. The Governor's plan would come on the heels of more than 10 years of business tax reductions that cost almost $3 billion in 2013, one-third of what the commonwealth will spend on Pre-K-12 education.
Noticeably absent from the Governor's proposal are provisions to close corporate tax loopholes that have drained resources from schools, universities, and county human services.
This “Trojan Horse” tax plan has a limited revenue impact in the first few years, as the big rate cuts begin in 2018, leaving a future governor saddled with the financial burden. Small revenue enhancements from penalties, elimination of certain credits, and other changes do little to reduce the plan’s total cost.
If enacted, this plan will make it more difficult for the commonwealth to invest in schools, health care, and infrastructure — let alone known funding increases for pension obligations.
Read the Pennsylvania Budget and Policy Center's full overview of the Governor's tax plan.
Comments
Post new comment
Thank you for joining the conversation. Comments are limited to 1,500 characters and are subject to approval and moderation. We reserve the right to remove comments that:
Posted comments do not necessarily represent the views of the Keystone Research Center or Pennsylvania Budget and Policy Center and do not constitute official endorsement by either organization. Please note that comments will be approved during the Keystone Research Center's business hours.
If you have questions, please contact [email protected]