Close the loophole
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In response to "The Deepest Cut: Left With No Options, the City Schools Pare Teachers" (June 3 editorial): Should Pennsylvania keep the Delaware loophole open despite the sobering costs? Keep the Delaware loophole open and see the economy in Pennsylvania decline further due to hefty cuts to education, health care and social services.
Pennsylvania schools and social services can be helped by collecting taxes from corporations currently sliding by in the Delaware loophole. Although corporations are subject to a corporate net income tax, 71 percent of corporations in Pennsylvania pay no tax to Pennsylvania. Why? Because many corporations establish their "home office" in Delaware, a state whose tax laws require no tax payment to other states. Such home offices often equate to a post office box or file drawer. Is it legal? Yes. Is it fair? No!
These corporations often pay lower taxes than a family making approximately $36,000 a year pays. What will happen when the middle class is wiped out and no tax base exists? We must genuinely close the Delaware loophole now; collect the taxes owed to Pennsylvania; and restore funding to health care, social services and education. This will provide jobs for many people, including people like my son who could not find a job in education and returned to school to earn his master's degree in education. He is now overwhelmed with student loan debt.
To aid our schools and essential social services and to preserve accompanying jobs, everyone needs to pay his or her fair share, not just the middle class.
First Published June 21, 2012 12:00 am