Welcome to Delaware where big corporations find shelter from Pennsylvania’s business income tax. The state could plug the loophole, collect millions and reduce taxes on businesses that pay it, but not everyone thinks that’s a smart idea. Why?
The average Pennsylvania family makes $50,702 a year and pays roughly $1,556 in state income taxes.
Corporations that make millions of dollars in Pennsylvania often face a far lower state income tax bill.
In fact, 71 percent pay nothing at all.
Some companies don't make a profit, so they don't owe state tax.
But other corporations — including many household names — avoid paying Pennsylvania's corporate net income tax by shifting profits to subsidiaries in states with special tax exemptions, like Delaware.
Read the full article on Lancaster Online