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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: April 3, 2019 02:07 PM
From: Representative Christopher M. Rabb
To: All House members
Subject: Prohibiting company-specific corporate welfare
Increasingly, elected officials are actively participating in bidding wars when they seek to commandeer tax-payer dollars to woo big businesses to locate or stay in their respective states.

But, the best public policy promotes opportunities for entire classes of employers that help create good, family-sustaining jobs — particularly in realms that help reduce the need for costly tax-payer-fueled government services.

Despite widespread recognition that corporate welfare is a poor use of tax-payer dollars, state officials continue to fall for this bait-and-switch for fear of losing out on the prospect of securing a large quantity of “good jobs”.

My forthcoming bill would enter Pennsylvania into a legally-binding agreement with like-minded states to not engage in any corporation-specific tax-payer-funded subsidies for any companies that seek to move to or from a participating state.

This interstate compact would keep Pennsylvania from offering any corporation-specific subsidies to any business located in any state that is a member of the compact.

The obligation not to offer the subsidy only triggers if other states agree to do the same thing so this will never put Pennsylvania at a competitive disadvantage to other states.

Such legislation has already been introduced in West Virginia, Illinois, Arizona, and New York.

Please co-sponsor this forthcoming bill to protect Pennsylvania from future corporate boondoggles.

Introduced as HB2865