McKonomics

Pennsylvania Governor-Elect Tom Corbett’s Tax Reform Initiatives

 The 2010 Pennsylvania gubernatorial election results may bring new tax reforms to Pennsylvania businesses once governor-elect Tom Corbett takes office in January 2011. Corbett's economic plan for revitalizing Pennsylvania's economy focuses on innovation, improved job creation, and an educated workforce. Tax reform is a focus of Corbett's intentions for improving the business climate and creating jobs in Pennsylvania. Tax reform will certainly be a highly-debated issue in the coming months, with the Pennsylvania budget deficits growing into the billions of dollars because of decreased state tax revenues, unfunded state pensions, and Federal stimulus money running out. In addition, Corbett plans to revitalize Pennsylvania's economy through a blended tax reform program that assists small and large job creators with the following proposed reforms:

Finish Phase-Out of the Capital Stock/Foreign Franchise Tax - The Capital Stock and Foreign Franchise Tax is imposed on the assets of incorporated entities, including S-Corps and LLC's. The tax is imposed on both Pennsylvania entities and non-Pennsylvania entities that conduct business in Pennsylvania. The tax is scheduled to phase-out by 2014 and Corbett intends to maintain the full phase-out schedule.

Year-End Charitable Gift Planning

 Americans donated more than $303 billion to charitable causes last year, according to the Giving USA Foundation. And while that represents a slight decline from the year before, Americans continued to give generously despite the economy.

The holidays are a popular time to make gifts. If you're getting ready to donate, be aware of the charitable tax deduction rules and some important

Monetary Donation Guidelines

To deduct a charitable donation of money, regardless of the amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the organization, as well as the date and amount of the contribution.

Update on the Journey to International Financial Standards (IFRS)

 International Financial Reporting Standards (IFRS) are back on the radar screen. Although many business leaders, regulators and financial professionals believe that globalization requires a single set of international accounting standards, they have hit road blocks trying to decide how, and how quickly to require them.

IFRS, a universal, global accounting language -- which is widely used outside the U.S. -- is geared toward providing investors with more easily comparable financial information and enhanced transparency. 

A recent survey indicated that U.S. companies need four to five years to prepare for a switch. Meanwhile, the SEC just issued a progress report on the potential transition for U.S. public companies.

Here's a rundown of these recent developments.