HARRISBURG, Pa., May 1, 2013 /PRNewswire/ -- Economic data across the board demonstrates that Gov. Corbett's 'plan' for Pennsylvania is failing miserably and lawmakers should reject the massive corporate tax giveaways that are the cornerstone the so-called 'tax reform' proposals and shale industry bills under consideration by the state House, the CLEAR Coalition said today.
"Ignore the rhetoric and look at the cold, hard data: our state now ranks 49th in job creation; our state unemployment rate remains above the national average; and our labor force has dropped to the lowest level in 30 years," said Dave Fillman, Executive Director of AFSCME Council 13 and Chair of the CLEAR Coalition.
"We are bleeding jobs but Gov. Corbett still wants to put his corporate friends first and is backing more and more giveaways to the natural gas industry and to corporations. House Bill 440 alone will cost the state $750 million a year once it takes full effect. It just makes no sense."
Kathy Jellison, President of SEIU Local 668, added, "Lawmakers need to get serious about real tax reform; closing corporate loopholes and balancing the playing field for citizens and small businesses."
"Pennsylvanians are already paying the price for the $800 million in corporate tax giveaways he has already handed out in his first two budgets. We are already paying the price for the $1 billion Gov. Corbett cut from our public schools," Jellison said.
Gov. Corbett's "tax reform" plan was added to HB 440. The plan includes an increase in the net operating loss allowance for corporations and a new phase-down of the corporate net income tax rate (from 9.99 to 6.99, starting in 2015 through 2025).
HB 440 also creates a new rule aimed at stopping some corporate tax avoidance, which CLEAR supports. Still, the bill falls well short of actually closing tax loopholes that companies continue to game at the expense of working Pennsylvanians because there are so many exceptions. The bottom line is that the bill will ultimately give away $7 for every $1 it brings, according to the Pennsylvania Budget and Policy Center.
In addition, the three House bills that comprise the 'Marcellus Works' proposal amount to $250 million in additional corporate tax giveaways that the state just cannot afford.
"Tax credits are no different than the corporate tax breaks and will not help educate one child; improve healthcare in one community health center; or help a single needy Pennsylvanian," said Jellison. "Tom Corbett is just wrong and the numbers show it. We need lawmakers to stand up for their constituents and fund core state programs."
For more information, go to www.clearforpa.org.
SOURCE CLEAR Coalition