April 26, 2008
Pittsburgh Tribune-Review on Corporate Taxes
With the second-highest corporate tax rate in America and among the world's developed countries—in combination with other job-killing levies—Pennsylvania cripples its prospects for new business.
Instead of an "open for business" sign, the commonwealth's corporate tax rate of 9.99 percent slams the door. Pity that the Pennsylvania Constitution does not prohibit government from engaging in self-destructive behavior.
A study by the nonpartisan Tax Foundation shows Pennsylvania among six states with the highest corporate tax rates. Those findings should be wielded like a 2x4 at the mule-headed Legislature to drive home the obvious: Pennsylvania's taxing and spending must be reined in.
The state's absurdly high tax rates on capital stock, property, gasoline and diesel are compelling reasons why companies prefer more business-friendly states. And foreign nations.
State House Republicans are urging nearly $500 million in tax cuts this election year. But Gov. Ed Rendell's spokesman said the proposal is misleading—73 percent of businesses subject to the Corporate Net Income Tax don't pay it.
Does Mr. Rendell consider this as something positive? Roughly half of all state corporations don't produce profits and about 23 percent of the total have a paper house in Delaware to avoid Pennsylvania's draconian taxes. [Read the full article.]
