|Posted:||December 13, 2016 11:20 AM|
|From:||Senator Christine M. Tartaglione|
|To:||All Senate members|
|Subject:||Closing the Delaware Loophole|
|In the near future, I plan to reintroduce legislation, formerly SB 274 of 2015-2016, 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.
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 Yudichak, Brewster, Blake, Schwank, Costa, Fontana, Farnese, Hughes, and Leach.
Introduced as SB164