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Governor Rendell Proposes Budget With No Tax Increase, More Money for Public Schools, Strategy for Jobs, Plan to Address Future Deficits
Date:2/9/2010

an class="xn-location">Pennsylvania would eliminate a loophole that currently permits three quarters of the corporations operating in the state to shield their profits from the corporate net income tax. In exchange for making the CNI fairer by applying it to all companies, Governor Rendell seeks to lower the rate from 9.99 percent to 8.9 percent.  Pennsylvania would also lift the cap on the amount of net operating losses that businesses are allowed to carry forward into future years, and would adopt the single sales factor, charging companies tax on the amount of sales they have in Pennsylvania rather than the size of their workforce or their physical presence within the state.

Changing the Way Government Works

To help reduce the influence of special interests that have often opposed common-sense efforts at making the state tax code more equitable, the Governor called upon the General Assembly in his budget address to enact campaign contribution limits. He also pressed for a citizen commission that would oversee nonpartisan legislative redistricting every 10 years, and for replacing the election of state appellate judges with a judicial appointment system.

He renewed his request to the General Assembly to create a quality unified health care plan for public school employees.

"Such a plan is good for teachers and school employees, but it's also good for taxpayers because it gives us the opportunity to contain the annual growth in school districts' health care costs and ensure that tax increases for this purpose are kept to a minimum," the Governor said.

Noting that many Pennsylvania electric utility customers are in line for hefty bill increases now that caps on rates are expiring after 10 years, he expressed a desire to see a fair plan in place to phase in those increases gradually.

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SOURCE Pennsylvania Office of the Governor
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