Over at Capitol Ideas, John Micek highlights a new study revealing that several big companies working in Pennsylvania paid no state income tax for at least one year between 2008 and 2010 -- legally:
The companies' tax situation is the "understandable outcome of a series of decisions made by state and federal lawmakers that are well-intentioned," but don't always have a beneficial effect on states' bottom lines.
Legislative Democrats in Pennsylvania have long pushed to close loopholes in state tax law that enable companies to avoid paying corporate income taxes. Republicans have countered that the state needs to lower its corporate net income tax to make Pennsylvania more attractive to business.
The study was done by the Institute for Taxation and Economic Policy and Citizens for Tax Justice. The companies are Air Products and Chemicals, Comcast, H.J. Heinz, Chespeake Energy and Verizon. Chesapeake Energy disputes the finding, saying the study's methodology was wrong -- click over to Micek to read the argument.