Pennsylvania Proposal: Have Oil Companies Pay Fair Share, Prevent Corporate Tax Avoidance

Pennsylvania Governor Ed Rendell has proposed a new "Oil Company Gross Profits Tax" on oil companies doing business in the state. The tax, which would be levied in place of the state's regular corporate profits tax, would be calculated using "combined reporting," a loophole-closing technique that has already been enacted in two states this year, and is estimated to raise more than $750 million a year. A new report from the Pennsylvania Budget and Policy Center argues that Rendell's proposal would be a sustainable and fair funding solution for Pennsylvania's transportation funding needs. Read the report here.