Citizens Alliance of Pennsylvania (CAP) lauds Gov. Tom Corbett for approving tax rules that are fair to employers and will result in economic expansion, i.e. more Pennsylvanians having a good-paying job.
Specifically, under Gov. Corbett’s reform, an employer can deduct expenses from his business tax burden in one year rather than having to spread them over many years. As one CAP supporter, a small businessman, explains, “This aligns tax policy with real world business operations…it means that when the business outlays cash, it gets a deduction. In the past, for example, if a business spent $100,000 for a piece of machinery that lasted 10 years, the business would get a deduction of $10,000 and pay taxes on $90,000. In this reform, the taxpayer pays when taxpayer is profitable.”
Adds CAP Chairman John Kennedy, a former small business owner, “This reform shows that Gov. Corbett understands the plight of employers struggling to turn a profit, expand, and hire people under the weight of Pennsylvania’s infamously onerous tax code. It shows that he is serious about turning our economy around.”