No, PA House Did Not Close the Delaware Loophole

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The only way to close the Delaware Loophole is through combined reporting. That is not what this bill does, so it does not close the Delaware Loophole. What the PA House passed was an add-back gimmick. That is not good enough. Unless companies who operate in many different states are required to file in Pennsylvania as a single taxpayer, PA will still miss out on tens hundreds of millions of dollars in revenue.

We need every 2014 candidate for the state legislature and Governor on the Democratic side to support combined reporting:

Some jurisdictions permit or require combined reporting or combined or consolidated filing of income tax returns. Such returns include income, deductions, and other items of multiple related corporations, and may compute tax as if such multiple entities were a single taxpayer. Most rules require that the corporations combined be commonly owned with only small minority ownership. Rules for such reports differ widely among jurisdictions. Combined reporting can limit tax benefit of shifting income between such related corporations, but permits the combined filers to benefit from losses of some entities where others have profits.

This entry was posted in Miscellany.

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