What's New
On May 10, 2007, the House Finance Committee held a hearing on “combined reporting”, an accounting reform that would prevent multi-state companies from shifting profits to out-of-state subsidiaries as a way to avoid Pennsylvania taxes. Phineas Baxandall, PennPIRG’s Senior Analyst for Tax & Budget Policy, testified in favor of the proposed measure. “It levels the playing field between in-state companies and those that operate with subsidiaries across many states,” said Baxandall, “Pennsylvania businesses should thrive based on their productivity and ability to innovate, not their opportunities for tax avoidance. This reform does away with a thousand tax loopholes at once. As more states catch on, fewer companies will waste their time on sham transactions and fake subsidiaries. Years from now people will shake their heads that states ever tried to collect taxes the old way.”
