Tuesday, June 17, 2008
The Pennsylvania Senate approved a $240 million tax cutting package Monday. The legislation would lift the forgiveness limit on the state's personal income tax every year for three years. It would also raise the cap on losses that a business could carry forward to offset taxes on future profits to $5 million or 20%, and it would double the income tax break to $50,000 that businesses could claim on the purchase of equipment and machinery. The cuts would add up to $96 million in the first fiscal year and $246 million in the 2010-2011 fiscal year. The bill, which was passed by a Republican-controlled Senate, now makes its way to a Democrat-controlled House.