Interest Groups Lining Up Proposals on How to Spend Federal Funding wvtf.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wvtf.org Daily Mail and Mail on Sunday newspapers.
Michael Pope reports
In recent years, concerns have been growing that corporations are finding new and creative ways to avoid paying taxes.
Chris Wodicka at the Commonwealth Institute says Virginia allows too many big businesses to dodge paying their fair share. Corporations have become much more sophisticated in how they strategize around reducing their state taxes by being able to move profits between different states and subsidiaries. The solution, he says, is combining the reporting of parent companies with their subsidiaries and related companies.
But Jared Walczak at the Tax Foundation says that combined reporting approach might end up being overly complicated and ultimately counterproductive. You may be adding a subsidiary or an affiliated company in another state that has no sales in Virginia. That actually reduces the amount you can tax the in-state company. So it s not always a pro. There are ways in which this can actually lose revenue.
Over the weekend, the General Assembly approved legislation to allow businesses across the commonwealth to deduct up to $100,000 of forgiven Paycheck Protection Program loans from their state taxes.
While that will certainly come as welcome news for businesses that received PPP money in the state, it could deepen the inequities already faced by Virginia’s Black-owned businesses.
Businesses across the country struggled in the wake of the COVID-19 pandemic’s onset and the resulting lockdowns, forcing the federal government to step in, guaranteeing loans to help companies cover expenses such as payroll. In Virginia, the federal government backed nearly 130,000 loans, doling out over $14 billion dollars in the state.
Virginia Doubles-Down on PPP, Potentially Harming Black-Owned Businesses vpm.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from vpm.org Daily Mail and Mail on Sunday newspapers.