Josh Shapiro on Tax Reform

	Josh Shapiro on Tax Reform

Close loophole allowing businesses to avoid their fair share

Close something called the Delaware Loophole. Follow me on this: of all the businesses in Pennsylvania, nearly 90% pay their full amount due in taxes--whether it's the CNIT or the personal income tax. But 11% of businesses--typically the ones who can afford bigtime accountants and high-priced lawyers--take advantage of a loophole in our system to avoid paying their fair share to our fellow Pennsylvanians. It's not fair that they get a free pass while everybody else pays.

Explanation by International Consortium of Investigative Journalists 6/27/22:Companies can use Delaware to avoid paying some taxes in other states. So there's a thing called the Delaware Loophole, which essentially enables companies to avoid paying state corporate income tax where they earn the revenue. Lax corporate tax laws have allowed the more than one million companies registered in Delaware to cloak themselves in secrecy and, in some cases, engage in illicit or dodgy financial activity.

Source: 2025 State of the State Address to Pennsylvania legislature , Feb 4, 2025

Lower the Corporate Net Income Tax

We need to continue the work this body began last year, finally lowering the Corporate Net Income Tax. Pennsylvania used to have the second highest business tax in the nation--making it too difficult for companies to grow and succeed, and more challenging for us to sell the Commonwealth. This year, my Administration is sending a different message. Pennsylvania is open for business and we're going to make our Commonwealth a leader in innovation, job creation, and economic development. Source: 2023 State of the State Address to Pennsylvania legislature , Mar 7, 2023

Get rid of nuisance taxes like the state cell phone tax

I have put forth a plan to help Pennsylvanians deal with rising costs. We put this forth a few months ago, making sure that we help seniors stay in their home by doubling what's known as the property tax rent rebate, giving them relief for household goods, getting rid of a whole bunch of nuisance taxes like the state cell phone tax, which takes over $300 million out of the pockets of Pennsylvanians, and giving every single driver a $250 immediate gas tax rebate to offset the pain at the pump. Source: CNN SOTU interviews on 2022 Pennsylvania Gubernatorial race , May 22, 2022

Eliminate the state cell phone tax, expand property rebates

He'll eliminate the state cell phone tax--specifically, the gross receipt and sales tax on cell phone service. By eliminating this 11% state tax, we can reduce Pennsylvanians' tax burden by $317 million and save folks money on their monthly cell phone bill. Lastly, Josh will lower household costs by expanding the Property Tax and Rent Rebate program, increasing the maximum rebate to $1,000 and making the program available to over 275,000 more eligible people. Source: 2022 Pennsylvania Governor campaign website JoshShapiro.org , May 18, 2022

We need to lower taxes, close loopholes, increase wages

Shapiro said Pennsylvania's 9.99% corporate net income tax rate -- the second highest in the country -- is too high and "holds businesses back." He didn't specify a preferred rate. "At the same time we have too many loopholes that they take advantage of," Shapiro said. "We need to lower taxes, close loopholes and simultaneously invest in our workforce by increasing wages." Source: Philadelphia Inquirer on 2022 Pennsylvania Governor race , Oct 13, 2021

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*Other governors on Tax Reform:*			*Josh Shapiro on other issues:*
*PA Gubernatorial:* Doug Mastriano Joe Gale Melissa Hart Scott Martin William McSwain *PA Senatorial:* Bob Casey Carla Sands Conor Lamb Craig Snyder David McCormick Everett Stern Jeff Bartos John Fetterman Kathy Barnette Malcolm Kenyatta Mehmet Oz Sean Parnell Sharif Street Val Arkoosh	*Mayoral/Gubernatorial races 2025* (seated Jan. 2026): NJ Governor: Mikie Sherrill (D), U.S. Rep. NJ-11. vs.Jack Ciattarelli (R), State Assemblyman (2011-2018). NYC Mayor: Zohran Mamdani (D), New York State Assembly, 2021-2025. vs.Andrew Cuomo (I), former governor of New York, 2011-2021. vs.Curtis Sliwa (R), CEO of the Guardian Angels. VA Governor: Abigail Spanberger (D), U.S.Rep., VA-7 (2019-2024). vs.Winsome Earle-Sears (R), Lt. Gov. 2022-2026. *Gubernatorial races 2026*: AK: Mike Dunleavy(R,term-limited) vs.Click Bishop(R) vs.Nancy Dahlstrom(R) vs.Tom Begich(D) AL: Kay Ivey(R,term-limited) vs.Doug Jones(D) vs.Tommy Tuberville(R) vs.Will Boyd(D) vs.Yolanda Flowers(D) AR: Sarah Huckabee Sanders(R,for re-election) vs.Fredrick Love(D) AZ: Katie Hobbs(D,for re-election) vs.Andy Biggs(R) vs.David Schweikert(R) vs.Karrin Taylor Robson(R) CA: Gavin Newsom(D,term-limited) vs.Antonio Villaraigosa(D) vs.Eleni Kounalakis(D,Withdrew to run for state treasurer) vs.Eric Swalwell(D) vs.Tom Steyer(D) vs.Xavier Becerra(D) vs.Zoltan Istvan(L) CO: Jared Polis(D,term-limited) vs.Greg Lopez(R) vs.Michael Bennet(D) vs.Phil Weiser(D) CT: Ned Lamont(D,for re-election) vs.Ryan Fazio(R) vs.Jen Tooker(R,withdrew) FL: Ron DeSantis(R,term-limited) vs.Byron Donalds(R) vs.David Jolly(R) vs.Jason Pizzo(I) vs.Jerry Demings(D) GA: Brian Kemp(R,term-limited) vs.Brad Raffensperger(R) vs.Chris Carr(R) vs.Keisha Lance Bottoms(D) HI: Josh Green(D,(No opponent yet)) IA: Kim Reynolds(R,retiring) vs.Brad Sherman (IA)(R) vs.Randy Feenstra(R) vs.Rob Sand(D) ID: Brad Little(R,for re-election) vs.Terri Pickens(D) IL: J.B. Pritzker(D,for re-election) vs.Darren Bailey(R) KS: Laura Kelly(D,term-limited) vs.Cindy Holscher(D) vs.Jeff Colyer(R) vs.Ty Masterson(R) vs.Vicki Schmidt(R) MA: Maura Healey(D,for re-election) vs.Mike Kennealy(R) MD: Wes Moore(D,for re-election) vs.Dan Cox(R) vs.Christopher Bouchat(R) ME: Janet Mills(D,term-limited) vs.Shenna Bellows(D) vs.Ed Crockett(I) vs.Robert Charles(R)	*Gubernatorial races 2026*: MI: Gretchen Whitmer(D,term-limited) vs.Aric Nesbitt(R) vs.Perry Johnson(R) vs.Jocelyn Benson(D) vs.John James(R) vs.Mike Cox(R) vs.Tom Leonard(R) vs.Mike Duggan(I) vs.Garlin Gilchrist(D,withdrew) MN: Tim Walz(D,retiring) vs.Jeff Johnson 2026(R) vs.Lisa Demuth(R) vs.Mike Lindell(R) vs.Scott Jensen(R) vs.Amy Klobuchar(D) NE: Jim Pillen(R,for re-election) vs.Lynne Walz(D) NH: Kelly Ayotte(R,for re-election) vs.Jon Kiper(D) NM: Michelle Lujan-Grisham(D,term-limited) vs.Deb Haaland(D) vs.Gregg Hull(R) vs.Steve Lanier(R) NV: Aaron Ford(D,) vs.Joe Lombardo(R) NY: Kathy Hochul(D,for re-election) vs.Antonio Delgado(D) vs.Bruce Blakeman(R) vs.Larry Sharpe(L) vs.Elise Stefanik(R,withdrew) OH: Mike DeWine(R,term-limited) vs.Vivek Ramaswamy(R) vs.Amy Acton(D) vs.Jon Husted(R,withdrew) OK: Kevin Stitt(R,term-limited) vs.Charles McCall(R) vs.Cyndi Munson(D) vs.Jake Merrick(R) OR: Tina Kotek(D,for re-election) vs.Christine Drazan(R) PA: Josh Shapiro(D,for re-election) vs.Ken Krawchuk(L) vs.Stacy Garrity(R) RI: Dan McKee(D,for re-election) vs.Helena Foulkes(D) vs.Aaron Guckian(R) SC: Henry McMaster(R,term-limited) vs.Jermaine Johnson(D) vs.Nancy Mace(R) vs.Ralph Norman(R) SD: Larry Rhoden(R,for re-election) vs.Dusty Johnson(R) vs.Jon Hansen(R) vs.Marty Jackley(R,withdrew) TN: Bill Lee(R,term-limited) vs.Marsha Blackburn(R) vs.Carnita Atwater(D) TX: Greg Abbott(R,for re-election) vs.Chris Bell(D) vs.Gina Hinojosa(D) VT: Phil Scott(R,(No opponent yet)) WA: Jay Inslee(D,for re-election) vs.Bob Ferguson(D) WI: Tony Evers(D,retiring) vs.Mandela Barnes(D) vs.Sara Rodriguez(D) vs.Kelda Roys(D) vs.Francesca Hong(D) vs.Tom Tiffany(R) WY: Mark Gordon(R,term-limited) vs.Eric Barlow(R) vs.Megan Degenfelder(R)	Abortion Budget/Economy Civil Rights Corporations Crime Drugs Education Energy/Oil Environment Families/Children Foreign Policy Free Trade Govt. Reform Gun Control Health Care Homeland Security Immigration Infrastructure/Technology Jobs Local Issues Principles/Values Social Security Tax Reform War/Iraq/Mideast Welfare/Poverty [Title9]