Thursday, March 20, 2008

High Pennsylvania taxes keep business away

For all the talk about creating a friendlier business climate in Pennsylvania, state government under Gov. Ed Rendell is working hard to prevent companies from locating to the Keystone State.

Pennsylvania has the second highest corporate income tax in the United States, according to The Philadelphia Bulletin.

Only Iowa has a higher tax rate than Pennsylvania. Pennsylvania's combined state and federal corporate tax rate is 41.5 percent, according to the newspaper.

The tax comparisons are based on information compiled by the Washington, D.C.-based Tax Foundation, which notes that "half of U.S. states tax job providers at a higher rate than any other country in the developed world." And you wonder why so many jobs are going overseas?

The Commonwealth Foundation's Policy Blog also takes a look at the big tax picture in a post titled, Pennsylvania has 2nd highest corporate tax - in the world
"At 41.5% (adjusting for federal deducation of state taxes) the tax rate for Pennsylvania corporation is about 2 percentage points higher than Japan, 7% higher than France, and 13.5% higher than Norway and Sweden." according to Policy Blog.
Any way you slice it, Pennsylvania has become far less business-friendly under the current "tax-and-spend" governor.

Several tax-cutting plans offered by Republicans have stalled in the state House of Representatives, which is controlled by Democrats. In the meantime, companies are taking their business (and jobs) elsewhere.

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