By Rep. Mike Sturla and Rep. David Levdansky
PATRIOT-NEWS OP-ED: “It’s really no different than your neighbor not paying their taxes and the state expecting you to pay more to make up the difference. Unfair, isn’t it? This is exactly what is happening now when certain corporations utilize the Delaware Loophole and shift profits to out of state and foreign subsidiaries…
“At a hearing of the House Finance Committee a few years back, a professor at the University of Connecticut School of Law and a practicing tax attorney began the meeting by stating, ‘I think I will start with a confession rather than a statement. I am someone who has helped shift millions of dollars from Pennsylvania to other states. I’m not embarrassed by it because you have allowed me to do it.’
“If the commonwealth would adopt combined reporting, we would be able to reduce the corporate net income tax, uncap the net operating loss carry forward, implement the single sales factor, and expand the research and development tax credit — all of which are supported by the business community… “ (more)
