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State House Passes Business Tax Overhaul

May 7, 2013

The state House of Representatives on Monday voted in favor of wide-ranging business tax reforms.

The bill was designed to close the infamous “Delaware Loophole,” while gradually reducing the state’s nearly ten percent corporate net income tax rate.  It also includes a number of other measures in Governor Tom Corbett’s business tax plan.

Supporters say it will spur the state’s economy by making Pennsylvania’s business tax rates more competitve.

Opponents say the provisions of the bill are too weak to thwart tax avoidance schemes, and they contend that the phased-in corporate tax rate reduction will dearly cost Pennsylvania citizens.

The bill passed the House by a 129-65 vote, and will be sent to the state Senate.

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