A flat tax for Pa. business?

Pennsylvania state House Speaker Keith McCall, D-Carbon, wants to flatten the state's business tax rate so it resembles the state personal income tax, which you can fill out on a postcard, because it has almost no exemptions.

McCall wants to scrap the state's nominal 9.99% corporate tax rate -- and all the "loopholes" that enable "larger" and "out of state" companies to "pay no tax" -- and replace it with a 3.07 percent flat tax, same as the personal tax rate.

McCall offers the rate cut as part of a deal that would also enact "combined reporting", which would make it harder for companies that do business in Pennsylvania to move profits out of state by disguising them as franchise, trademark, copyright or patent fees. Aide Bob Caton estimates the net gain to the state at $60 million, but added that's a "ball park figure" prior to "meet(ing) with everyone involved (to) hammer out a deal that is fair to businesses of all sizes."