FOR IMMEDIATE RELEASE
State Rep. Jaret Gibbons
Gibbons supports closing Delaware Loophole and business tax fairness
HARRISBURG, May 2 – State Rep. Jaret Gibbons today voted for legislation that would make Pennsylvania more attractive to businesses by closing the Delaware Loophole and reducing the Corporate Net Income tax.
“Pennsylvania has the highest corporate income tax in the nation which discourages industries from relocating here and creating jobs,” Gibbons said. “By lowering the state’s Corporate Net Income tax rate from 10 percent to 7 percent we will be competitive with other states and help to encourage job creation by improving our business climate.”
To help offset the revenue loss to the state, Gibbons said the bill, H.B. 2150, also attempts to close the Delaware Loophole which allows about 70 percent of national and global companies doing business in Pennsylvania to avoid paying state taxes. As a result, many small businesses pay a higher state tax rate than large corporations.
“Small businesses today are shouldering a greater burden because massive corporations doing business here are exploiting a tax loophole. Closing the Delaware Loophole will modernize our corporate tax structure and ensure massive foreign corporations pay their fair share in state taxes.
“We must be vigilant in leveling the playing field for businesses by closing the Delaware Loophole and other tax avoidance schemes so that responsible businesses and individuals are not asked to pay more than their fair share.
“I believe we should concentrate on reducing taxes on small businesses which are typically locally and family owned. Small businesses are the biggest employers and lowering their tax burden would allow them to create even more jobs and stimulate our economy.”
Gibbons said the bill goes to the Senate for consideration.
CONTACT: Kevin Hensil