ALTOONA, BLAIR COUNTY - Plenty of reaction from Governor Corbett's budget proposal yesterday. It includes more money for education and area roads and bridges. And to pay for it, possible tax increases on gas...
But as WTAJ News found out, there could be some tax breaks for local businesses.
One of the main breaks for local businesses is reducing the state's Corporate Net Income Tax over the next 22 years.
To give you an idea, PA's got one of the highest Corporate Net Income Taxes in the country at 9.99%. But by 2025, Corbett's budget proposes it to drop to 6.99%.
3% doesn't sound like a big difference, but one accountant says it's more like 33%.
Tax season's coming Which means AC Stickel, who owns The Tax Shelter, a busy guy. Going through papers, getting people filed, Stickle does taxes for many businesses.
Stickel says dropping the corporate tax rate will make more businesses from out of state come here.
"...I'm from outside Pennsylvania, and I'm going to decide whether I'm going to build in North Carolina or Texas, or Pennsylvania, I'm going to look at a whole host of factors, one of which is what's the tax rate and what am I going to pay in taxes?"
Stickel also owns his own business which means Corbett's Corporate Net Income Tax Break would make a big difference, not only for his clients, but for him.
"It will allow us though, to actually increase our business and hire more people, and increase our volume without being punished."
But the budget could raise taxes on certain things to make up the difference, so how is it worth it to the general public? Stickel says it'll bring more employment opportunities.
"You have a low paying job, you don't have a job, or you'd like a better job, then this creates an opportunity for you to get a job or to get a better job."
Corbett's budget also proposes to increase the cap on net operating losses from 3 million dollars to 5 million. If you start a business, it takes a while to get profitable, sometimes years. Raising the cap to 5 million means a longer time to be successful with a start-up shop.
Stickel adds there are other reasons why folks would be willing to pay more in taxes to get more businesses here in central PA. He says that once businesses move, they'll begin to hire local employees. Those employees in turn, will have to pay taxes. While most of the rest of their
paycheck's will be spent here, helping boost the local economy.