Income tax, corporate; eliminates tax for taxable years beginning on or after January 1, 2014. (SB692)
Introduced By
Sen. Steve Martin (R-Chesterfield) with support from co-patron Del. Mark Cole (R-Fredericksburg)
Progress
✓ |
Introduced |
✗ |
Passed Committee |
☐ |
Passed House |
☐ |
Passed Senate |
☐ |
Signed by Governor |
☐ |
Became Law |
Description
Elimination of the corporate income tax. Eliminates the corporate income tax for taxable years beginning on or after January 1, 2014, by setting the rate of the tax at zero percent. Read the Bill »
Outcome
Bill Has Failed
History
Date | Action |
---|---|
08/31/2012 | |
08/31/2012 | Prefiled and ordered printed; offered 01/09/13 13100304D |
08/31/2012 | Referred to Committee on Finance |
01/09/2013 | Impact statement from TAX (SB692) |
02/06/2013 | Left in Finance |
Comments
Note that the Joint Legislative Audit and Review Commission (a legislative agency) recently conducted a study of the state's corporate income tax (CIT) at the request of the General Assembly and concluded that:
Here are some specific highlights:
About 5% of Virginia's income is derived from the corporate income tax, so eliminating this tax would either require a huge cut in spending or a significant increase in other taxes. The study also points out that less than 40% Virginia businesses pay the corporate income tax at all.
So, to summarize, Sen. Martin proposes to do something that is precisely the opposite of what the legislature's own research team recommends after being directed to research it by the legislature. Either Sen. Martin has access to his own special research about Virginia that his own staff lacks, he is seeking to harm Virginia economically, or he is cynically introducing a bill that he knows has no chance of passing in order to curry favor with voters, donors, and interest groups. I cannot claim to know which is true.
You want Virginia business to bloom and unemployment to drop? Support this bill. This is much better than Gov. McDonnell giving tax breaks to some companies over others just to get jobs in Virginia giving current businesses a disadvantage. But having companies move to VA allows Gov. McDonnell to do ribbon cutting and receive praise from the press.