A Missed Opportunity to Close Corporate Tax Loopholes

The Pennsylvania House voted 129-65 Monday to approve legislation enacting hundreds of millions in new corporate tax cuts in the years ahead. This chart shows how much this bill will cost over time, coming at the expense of investments that matter to our economy and communities, including schools, safe streets, and infrastructure.

Net Revenue Impact of HB 440

Below is a statement I issued late yesterday afternoon

We are disappointed that the House missed an opportunity to close corporate tax loopholes and level the playing field for all Pennsylvania businesses. Pennsylvania residents and businesses are no closer to having a fair tax system than they were when they woke up this morning.

This bill will enact tax cuts that the commonwealth cannot afford, giving away $7 for every $1 it brings in to state coffers and continuing the shift of responsibilities and costs to local governments. The irony is that this bill will increase property taxes for seniors and working families, and for the very businesses that proponents are trying to help.

Despite its high cost, the bill will have little meaningful impact on job growth. By the governor’s estimate, it will create 18,000 jobs in 2025 — 0.3 percent of total state employment and less than the 20,000 education jobs lost following deep state funding cuts. A better and more immediate way to boost job growth would be to return the $900 million cut from education and let school districts hire back reading and art teachers, language specialists and guidance counselors.

Last week’s revenue report from the Independent Fiscal Office underscores that now is the wrong time for costly corporate tax cuts. If signed into law, this bill will come at the expense of investments that really matter to our economy and local communities, including schools, safe streets, and infrastructure.

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