#PAGov: No, the Wolf Organization Isn’t Using the Delaware Loophole

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Thomas Fitzgerald cleared this up last week, and now the Wolf campaign has an ad up refuting it.

A new attack ad from Gov. Tom Corbett (R) accuses Democratic opponent Tom Wolf of hypocrisy because, it says, his building-products company takes advantage of a loophole to avoid corporate taxes while he favors more taxes on the middle class.

One problem: the Wolf Organization, though it is chartered in Delaware, says it pays corporate taxes in Pennsylvania and the 27 other states where it does business. State law allows many corporations to avoid Pennsylvania tax by listing assets in Delaware, the so-called “Delaware Loophole.”

This is a pretty awkward line of attack for PA Republicans.

On the one hand, Republicans say they closed the Delaware Loophole. But if that were true, how come Corbett’s accusing the Wolf Organization of using it?

Republicans want to be able to use political attacks on tax avoidance, because it’s an unpopular thing, but they don’t actually want to close the Delaware Loophole with combined reporting.

It’s a strange dance, and it’s actually the reverse of the national party’s “don’t hate the player, hate the game” stance on international business tax avoidance.

This entry was posted in Elections, Governor.

7 Responses to #PAGov: No, the Wolf Organization Isn’t Using the Delaware Loophole

  1. Julieann Wozniak says:

    Fast Forward is a marvelous innovation. Corbett is blowing all that Koch cash for naught.

  2. tgb says:

    What is the difference in what passed on the Deleware exemption vs what retiring Rep Phyllis Mundy wanted for the Deleware exemption. I think that is what we are talking about. If legal Wolf is doing nothing wrong. However we are still givung Kids For Cash prisoner Robert Mericle all the KOZ exemptions he has asked for and both sides do not have the gumption to take the tax breaks away. If you note all the State reps, senators are all democrats and I hear no outrage there.

  3. H.J.Gronau says:

    what are you smoking? The PA governor’s mansion, state senate and state reps are all in republican hands…

  4. tgb says:

    I know that. Also, Wolf is somewhat disingenous on raising the Personal Income tax since he knows it takes a Constitutional Ammendment that is not going to happen with a very safe if gerrymandered republican Senate and House. What point i was making that was not clear is that all the Rep and Senators that have robert mericles KOZ buildings are in Democratic represented legislators who have been pregnantly absent on repealing his taxfree KOZ status. So we are in effect continuing major tax breaks to currently imprisoned felons ie in Minersville with no moral outrage by these Democrats. Also, No One in the State seems to know how much he is avoiding in taxes because of opaque reporting or lack of it in KOZ accounting. So to answer your question I do not smoke anything.

  5. Michael Moroz says:

    No one disputes that he pays taxes in 27 States. The accusation is that he purposely moves payment to Delaware in order to avoid PA taxes. If that’s not the case, why won’t he release his tax forms?

  6. tgb says:

    He should release his tax forms to have any credability. I know as a CPA albeit in industry not public accounting that the estimated Deleware tax avoidance numbers the state uses have been woefully underestimated. That is why I ask the difference between Rep Mundys proposal and what was adopted. I was never a fan of Phyllis but i think she may have been on to something this time. I hope she enjoys her retirement. Her aide is running for her job and she does not impress me. The Republican candidate has little practical experiance. This tax if well written would upset some of the rich southeastern Pa. types that are liberal in addition to the hard R’s.

  7. bob barclay says:

    If it wasn’t for New Jersey, the Pa legislature would be recognized as the most corrupt in the nation. Both parties use their power as legislature to divert taxpayer money to their family, friends and political allies. These folks actually believe they are entitled to use elected office, political appointments, and involvement with taxpayer dependant NGOs as tools to create a ruling class, in which goernment is by the aritocrats, of the aristocrats and for the aristocrats. When we voters allow our own party affiliation to prevent us from seeing evil among our own, while refusing to admit the merit of the other party’s ideas, we actively participate in our own oppession.