The Pennsylvania House of Representatives approved legislation Wednesday that would enact nearly $1 billion in corporate tax cuts by the end of the decade. If signed into law, this bill will weaken Pennsylvania’s economy and result in a long-term erosion to the quality of our schools, colleges, health care and human services for the commonwealth’s children and families.
The Pennsylvania House of Representatives approved legislation Wednesday that would enact nearly $1 billion in corporate tax cuts by the end of the decade. If signed into law, this bill will weaken Pennsylvania’s economy and result in a long-term erosion to the quality of our schools, colleges, health care and human services for the commonwealth’s children and families.
House Bill 2150 will not close the Delaware loophole that large multi-state companies use to avoid paying state taxes, but it will mean major cuts down the road and a tax shift onto individual taxpayers. And it comes with no commitment from businesses to put Pennsylvanians back to work.
Twenty-three Democrats joined most Republicans in support of House Bill 2150, while two Republicans joined 56 Democrats to vote against the bill. The overall vote as 129-58.
The bill is so costly that even Governor Corbett’s administration has voiced concerns about it. Revenue Secretary Dan Meuser told Capitolwire this week: “And frankly, in a period when revenues are sensitive and budget challenges are great, the timing is not right to enter into a new program in tax reform that can create uncertainty, the governor is very interested in a perhaps larger more comprehensive tax reform bill, possibly next year if the timing is right. Hopefully it is and we will have a stronger economy and revenues are more stable.”
Most Pennsylvanians support closing corporate tax loopholes to level the playing field for all businesses and boost the state’s economy. But lawmakers need to act cautiously and responsibly. House Bill 2150 takes the wrong approach. It would ensure budget shortfalls, major service cuts and higher local taxes for years to come.
The Pennsylvania Budget and Policy Center has done extensive analysis of and commentary on House Bill 2150. Find more on the bill here.