Smith Issues Statement on Bill to Level Playing Field For PA Businesses
HARRISBURG – House Speaker Sam Smith (R-Jefferson, Indiana, Armstrong) issued the following statement after the House passed legislation to close the so-called “Delaware Loophole.” This practice currently enables some corporations to avoid paying taxes in Pennsylvania. House Bill 2150 now moves to the Senate for consideration.
“If we expect job creators to actually create jobs, we need to level the playing field for all businesses in Pennsylvania and, just as importantly, improve the business tax climate in this state.
“Most job creators cannot and do not take advantage of the Delaware Loophole -- a practice that has enabled other businesses to avoid paying their share in Pennsylvania. This places many enterprises at a competitive disadvantage in what is supposed to be an open marketplace.
“While there are some who may believe a successful business is built on avoiding all the taxes you can, I think we have to draw the line when a certain tax loophole is clearly hurting existing enterprises, thereby making our state less attractive to potential job creators. This situation only picks winners and losers and places further strain on our economic recovery efforts.
“This legislation offers a fair and targeted approach to addressing the Delaware Loophole. In addition, other provisions in the bill are aimed at reforming our state’s entire business tax structure. House Bill 2150 is a strong indication that the House of Representatives is serious about Pennsylvania becoming a competitive place to do business. I look forward to the Senate’s consideration of this legislation.”
PA State Rep. Sam Smith, 66th District
Speaker of the House
Contact: Kelly Fedeli