|Posted:||March 11, 2013 04:06 PM|
|From:||Senator Jake Corman|
|To:||All Senate members|
|Subject:||Taxpayer Offset – One class gains and losses to be offset against another class|
|In the near future, I plan to reintroduce Senate Bill 562 of last session. This legislation allows for Personal Income Tax (PIT) gains or losses in one class to be offset against another.
Under section 303 (a) of the Tax Reform Code of 1971, the PIT is levied against eight classes of income. A loss in one class of income may not be offset against income in another class and gains or losses may not be carried forward or backward from year to year. This is more restrictive than federal tax calculations allow.
This situation was brought to my attention by one of my constituents. The individual found that losses from business partnerships cannot be offset against investment income such as interest or dividends. If money is lent to a legitimate business partner, the interest income on the loan is reported on an individual tax return. However, if the partner loses money, this loss cannot be offset.
There is no question that Pennsylvania is losing entrepreneurs. I believe this proposal will reverse the loss of job creators and directly lead to job growth by creating a more fair tax system.
If you have any questions with regard to this co-sponsorship, please contact Scott Sikorski in my office at 787-1377 or at firstname.lastname@example.org.
Introduced as SB1018