When the layers of Governor Tom Wolf’s latest budget proposal are peeled away during the legislative budget hearings that begin next week, Pennsylvanians will see a rogues gallery of job-killing tax increases from across the decades – some defeated, some repealed – back to haunt our economy.
Only two states, Pennsylvania and New Hampshire, cap the net operating losses (NOL) business can carry over against their Corporate Net Income (CNI) taxes. Here’s why the other 48 don’t. The cap penalizes start-up and cyclical companies by significantly increasing their effective tax rate. Allowing for the deduction in net operating losses improves a business’s tax liability. Not allowing for uncapped NOL deductions puts Pennsylvania at a direct disadvantage in attracting or retaining jobs in these innovative industries.
Toomey Report: Manufacturers Face Job-Killing Tax Hike Under Obama Plan
While excuses continue to be made for President Obama’s dismal record on job creation, it’s more difficult to rationalize a policy that actually drives jobs away.
A report prepared by U.S. Senator Pat Toomey (R-Lehigh) shows that the Administration’s tax policies will undermine the very sector that has the strongest multiplier effect on job growth - manufacturing.
A planned tax increase in 2013 will raise the marginal rates on many manufacturers from 35 percent to 41 percent.