Reed Bill to Close Delaware Loophole Advances
HARRISBURG – Legislation aimed at closing the “Delaware Loophole” cleared its first hurdle by being voted out of the House Finance Committee today with bipartisan support. House Bill 2150, sponsored by State Rep. Dave Reed (R-Indiana), would create a more competitive and fair business climate in Pennsylvania.
“Finding and keeping good family-sustaining jobs is what’s on everyone’s mind these days,” said Reed. “Unfortunately, because of Pennsylvania’s complicated tax structure and high tax rate, job creators are unwilling to relocate and even remain in the Commonwealth.”
House Bill 2150 closes the Delaware Loophole to even the playing field for all companies doing business in Pennsylvania and gradually lowers one of the highest corporate tax rates in the nation.
“The mere existence of the loophole creates an unfair and unbalanced business environment,” Reed said. “A successful business is not based on who can avoid paying the most taxes; it’s based on hard work and a good business model. Closing the Delaware Loophole allows us to lower the tax burden on all Pennsylvania businesses, which will in turn create jobs.”
Targeting very specific transactions among close business affiliates, the new proposal in House Bill 2150 would only affect businesses that are taking advantage of the loophole for the sole purpose of tax avoidance in Pennsylvania.
The bill now advances to the full House for consideration.
State Representative Dave Reed
62nd District, Pennsylvania House of Representatives
Contact: Stephanie Hewitson