Pennsylvania To Raise Small Businesses’ Taxes To Lure Big Businesss
Pennsylvania plans to raise taxes on small businesses so that they can attract more big businesses, according to Law & Entrepreneurship News:
Pennsylvania is looking for ways to reduce state corporate net income taxes by 30%. The proposed tax cut for corporations would include a provision that increases the Pennsylvania small business tax rate by roughly 33% for many small businesses.Currently, Pennsylvania’s corporate tax rate is 9.99%, the third highest in the nation. In hopes of attracting more corporations to the state, Pennsylvania is looking to reduce the corporate rate to 6.99%. Gov. Ed Rendell requested that the plan be revenue neutral. Thus, to make up for the revenue shortfall, Pennsylvania is looking to raise the small business tax rate from 3.07% to 4.07%.
How many small business will go under because of this change? How many will leave the state?
Dan Sherman on December 6th, 2004 1:26 pm
Even more to think about. How many new ones won’t get off the ground in the first place? I’m a proponent of a “startup moratorium” on all small business taxes for their first 3-5 years unless they start making a profit over X amount. You’d have a LOT more businesses that actually succeed, I can tell you that.
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