|Posted:||December 1, 2014 03:27 PM|
|From:||Senator Christine M. Tartaglione|
|To:||All Senate members|
|Subject:||Co-Sponsorship of Legislation: Closing the Delaware Loophole|
|In the near future, I plan to reintroduce legislation, formerly S.B. 204 of 2013-2014, which will enhance tax fairness for all Pennsylvania businesses by closing a method of corporate tax evasion known as the Delaware Loophole. Through this loophole, corporations are able to incorporate in Delaware while doing business in Pennsylvania.
The continued exploitation of the Delaware Loophole allows some businesses to avoid paying corporate taxes at the expense of other businesses already paying taxes in the Commonwealth. Further, it prevents the General Assembly from reducing the state’s 9.99% Corporate Net Income (CNI) rate—the second highest in the nation.
As Pennsylvania’s economy continues to recover, it is important that we pursue policies of economic growth, job creation and reasonable business incentives in this state. Adopting measures to close the Delaware Loophole will ease the tax burden for all Pennsylvania businesses, especially those which are newly established or struggling to remain open, while also increasing revenue to the state. I believe this will help to bring greater economic stability and an improved employment outlook to Pennsylvania and its residents.
Previous co-sponsors of this bill include Senators Farnese, Hughes, Yudichak, Fontana, Costa, Leach and Brewster.
Introduced as SB274