Pennsylvania’s Republican Senate Majority Leader Dominic Pileggi admitted yesterday through his staff that an unintended 18% tax break for banks resulted in them paying $87 million less than expected this spring in a tax on the value of bank shares.
According to CNHI Statehouse Reporter John Finnerty, “[b]anks had been pushing for a rewrite of the stock shares tax,” and lawmakers eliminated the tax based on a six-year average of a bank’s equity capital and lowered the tax rate.
Yet, the chief of staff for Senate President Pro Tem Joseph Scarnati, R-Jefferson, said that it’s still “not clear” why the bottom-line take was almost $90 million short.
At the same time, the Pennsylvania Republican Party is attacking Democratic gubernatorial hopeful Tom Wolf by claiming that his cabinet company uses the Delaware tax loophole.
According to the Philadelphia Daily News, Megan Sweeney, a spokeswoman for the state Republican Party, “stood by claims that Wolf used the loophole to dodge taxes but offered no proof. Instead, she complained that he has not released his corporate-tax returns.”
Tom Wolf emphatically said that his business is in 28 states, does not use the Delaware loophole, and is registered to pay taxes in all those states.
So, typical of GOP obfuscation tactics, Pennsylvania Republicans are falsely accusing Tom Wolf of avoiding corporate taxes while their own legislators are responsible for accidentally losing $87 million dollars in bank taxes.