Pennsylvania is slightly closer to having a budget, although the bill that finally emerges is unlikely to be cause for celebration. Their House over the weekend approved lots of tax changes, including increased taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es on tobacco products, a natural gas severance tax, a tax amnesty for 2009-10, and the exemption of helicopters and helicopter parts from the sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. -promised to create 300 new jobs. As well as:
The roughly $28 billion spending plan increases education spending by $300 million over last year and sustains spending on other state programs important to the governor and his allies in the General Assembly. It also broadens the state sales tax to cover arts and culture events. Also, to the chagrin of anti-tax economic experts, it also slows down the phase-out of the state’s punitive capital stock and franchise tax.
States are increasingly repealing capital stock and franchise taxes because such taxes on corporate “wealth” target capital formation and investment even if a company is unprofitable, and at a time when most states are trying to encourage capital formation and investment.Share