Chance to lower 9.99% corp net income? (Penn: sales, schools, high income)

[pman]

with all this talk of a shale gas tax, perhaps there should be some consideration of using the revenue to offset a decline in the nation's highest corp net income tax which puts all incprorated PA businesses at a disadvantage

"You've got to look at all the taxes together," said Mr. Hutchinson, who is now a consultant. "We've already got a high income tax and sales tax, so, just because you're low in one tax doesn't mean you need to raise it."

Read more: Pennsylvania's tax level for shale drilling sparks debate

[BPP1999]

It sure would be nice.

The problem is, too often in PA, "being friendly to business" means giving connected businesses no-bid contracts or relaxing pollution standards. What "being friendly to business" should mean is making a place that businesses want to operate in, and that includes making the business taxes more reasonable.

[Craziaskowboi]

Even though I think that human capital will matter more than taxes in regard to business-friendliness in the 21st Century, the state's corporate income tax still needs to be lowered. Only Iowa's is higher. I think 5.99% or something like that would be much better.

[pman]

human capital is important but its fluid i can start a business in another state if i wish

[Craziaskowboi]

Originally Posted by pman

human capital is important but its fluid i can start a business in another state if i wish

But there's a proven advantage to being located near talent streams.

[BPP1999]

Originally Posted by Gnutella

Even though I think that human capital will matter more than taxes in regard to business-friendliness in the 21st Century, the state's corporate income tax still needs to be lowered. Only Iowa's is higher. I think 5.99% or something like that would be much better.

There may be parts of PA (heck, even huge swaths) where human capital needs for the 21st century are lacking, but there are also regions in PA where such a need is hardly lacking.

[pman]

Originally Posted by Gnutella

But there's a proven advantage to being located near talent streams.

there's a proven advantage to having a more competitive business environment as well, so I'm not sure what you're point is. you want both.

[Craziaskowboi]

Originally Posted by pman

there's a proven advantage to having a more competitive business environment as well, so I'm not sure what you're point is. you want both.

I know. All I'm saying is, a state with lower corporate income taxes and a small talent pool is in no better shape than a state with higher corporate income taxes and a large talent pool. Texas has low corporate income taxes and a large talent pool, which is why they're kicking everybody's ass these days.

[pman]

Originally Posted by Gnutella

I know. All I'm saying is, a state with lower corporate income taxes and a small talent pool is in no better shape than a state with higher corporate income taxes and a large talent pool. Texas has low corporate income taxes and a large talent pool, which is why they're kicking everybody's ass these days.

our talent pool isn't awful (though secondary education certainly could be better in a lot of places) but between the state's two largest cities and penn state there's always a reasonably large influx of students (and some good ones at that, not to mention the many smaller schools). Pennsylvania's biggest problem is in retention as well as attracting them. For PA, I believe the corporate taxes is out of line and probably the easiest to fix (bureuacracy is also out of line but is harder to fix).

[BPP1999]

Actually, the capital stock tax is just as bad. It's down to about 1/3 of what it originally was, but the phaseout keeps being postponed. Both candidates for governor at least acknowledge that the phaseout must continue. More businesses pay the capital stock tax; only C corporations pay the CNI tax. I do agree 100% that the CNI rate should be dropped at least 25%, if not more.