Posted: | February 7, 2013 12:03 PM |
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From: | Senator Vincent J. Hughes |
To: | All Senate members |
Subject: | Co-sponsorhip Memorandum – Effect of Federal Tax Law Changes on PA Tax Reform Code |
In the near future, I will be re-introducing SB 1579 of the 2011-12 session. This legislation amends the Tax Reform Code of 1971 to require the Department of Revenue to get legislative approval before implementing changes in federal tax law if those changes would have a negative fiscal impact on Pennsylvania tax revenues. One version of this process has been referred to as “de-coupling.” In 2011, the Department of Revenue and the Governor applied changes in federal tax law relating to “bonus depreciation” under section 168(k) of the Internal Revenue Code to the Pennsylvania Tax Reform Code. These changes to federal tax law were extended through 2013 by “The American Tax Relief Act of 2012.” The bonus depreciation changes implemented by the Corbett Administration resulted in a revenue loss to the General Fund without legislative input. My legislation would simply require legislative approval of any future changes to our Tax Code based on changes in federal law if those changes would negatively impact Commonwealth tax revenues. The legislation preserves separation of powers between the Legislative and Executive branches of government and recognizes that the General Assembly should play a role in any decision that could negatively impact Commonwealth revenues. Co-sponsors last session were FONTANA, TARTAGLIONE, BOSCOLA, FERLO, WILLIAMS, SOLOBAY, FARNESE, COSTA, YUDICHAK AND SCHWANK. |
Introduced as SB674