in email from Senator Katie Muth (D-144), 2/19/20
In late January, Senator John P. Blake and I held an important hearing on combating corporate tax-avoidance and ensuring corporations are paying their fair share! Pennsylvania is in desperate need of tax fairness. It’s frustrating to see corporations sheltering profits through avenues like the Delaware loophole, which then leaves small businesses and working people with the majority of the state’s tax burden. Amy Gill, the Deputy Secretary of Tax Policy for the Department of Revenue, predicted that (using an average combined reporting rate) Pennsylvania could reap an additional 29% ($677 million) in corporate tax revenue.
• Nearly 71% of corporations operating in PA do not pay any corporate tax.
• The working class has been taxed at a rate nearly 3x their income as a result of corporations not paying their taxes
• By 2003, 84% of all corporations were paying only $1,000 in taxes – that’s less than what a Pennsylvania family earning $36,000 a year pays in annual income taxes.
Senator Blake and I are exploring legislation that would hold mega corporations accountable by closing loopholes that enable them to skirt their share of the tax burden.
See video of the hearing here. A real fiscal problem: almost 4 of 5 corporations doing business in PA are not paying corporate tax here. And according to the testimony, the business tax rate could be lowered if more corporations actually paid the tax.