About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Joseph Henchman, Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes 1 (2010)

handle is hein.taxfoundation/ffcbdxz0001 and id is 1 raw text is: FOUNDATION February 25, 2010 No. 213 FISCAL FACT Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes By Joseph Henchman Introduction On February 9, 2010, Pennsylvania Governor Ed Rendell (D) unveiled a $66.4 billion budget.' The general fund portion is $29 billion, 4.1 percent higher than the current general fund.2 (See Figure 1 for Pennsylvania's state-local revenue and expenditures over time.) The budget includes significant tax proposals. * Broaden the state sales tax and lowering the rate from 6% to 4%. The change would eliminate many unjustified exemptions but would double-tax some retail items by taxing business-to-business transactions. The largest unjustified exemptions (most groceries, clothing, legal and medical services) would remain. The change would be a net revenue increase despite the rate reduction. * Eliminate sales tax vendor compensation. * Reduce the corporate income tax rate from 9.99% to 8.99%, eliminate the cap on net operating loss carry-forwards, but impose combined reporting and single-sales factor apportionment. The net result of this package of positive and negative reforms would be an increase in business tax burdens, particularly for out-of-state businesses. Impose a new severance tax on natural gas extraction. Seek federal aid by increasing unemployment benefits and exploit the federal Medicaid matching fund system. 'Governor of Pennsylvania, 2010-11 Governor's Executive Budget, http: / ww.g overror.state.pa.,,s /portal /erver.pt/comnunit' i/.overnor /27s - eb site 2985 2 Amy Worden, Mario Cattabiani, and Angela Couloumbis, Rendell's budget boosts spending and broadens taxes, Philadelphia Inquirer (Feb. 10, 2010), http:,'wvw.phillIv.con,/phil.v/news/honenae,/83994572.htmil Joseph Henchman is Tax Counsel and Director of State Projects at the Tax Foundation.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most