PA. to cut public college funding by $257 million to pay for $247 million corporate tax cut

If you total up the proposed cuts to the public colleges and need-based student college grants in PA, it comes out to $257 million. That is very close to the $247 millon cut that Governor Corbett is proposing to a State business tax.

A similar result was approved in the current year's budget.

Corbett insists he needs to reduce spending because of reduced revenues. However, that reduction in revenues was caused by Corbett. First, he delayed any fees/taxes on the rapidly expanding natural gas industry. When a fee was finally enacted this month, it was a fraction of what is charged in similar states. The delay cost $300 million.

Second, on his own, Corbett put into effect a change in state taxes for business depreciation that has cost $200 million.

Third, he has reduced business taxes last year and this year.

Fourth, he delayed the collection of sales tax on internet transactions, costing another $200 million. Instead, people who buy items on the internet are asked to please voluntarily send in sales tax to the state.

Other states have closed the "Delaware Loophole" that allows states to shift profits to Delaware subsidiaries to avoid paying their fair share of state taxes. He has refused to act to close it. In fact, the current leading current proposal to close the Delaware Loophole that is sponsored by some Republicans includes so many loopholes and other tax breaks that a recent analysis found it would actually REDUCE tax revenues to the state.