Burns votes to close corporate loopholes and deliver tax breaks for working Pennsylvanians
No tax on tips; no tax on overtime; tax credit for workers – while lowering business taxes
Rep. Frank Burns June 26, 2025 | 2:47 PM
HARRISBURG, June 26 — In a bold move to make Pennsylvania’s tax system fairer and more competitive, state Rep. Frank Burns, D-Cambria, celebrated the passage of landmark legislation that would deliver tax breaks for working Pennsylvanians while closing loopholes that have allowed large, out-of-state corporations to avoid paying taxes in Pennsylvania.
The measure, House Bill 1610, passed the state House Wednesday with bipartisan support by a vote of 104-99. See how every House member voted here: HB 1610 Roll Call
“For far too long, the tax code in Pennsylvania has worked for the powerful, leaving small businesses and working families footing the bill,” Burns said. “This legislation would close the ‘Delaware Tax Loophole.’ It would cut taxes for businesses, provide tax breaks for working people, and level the playing field for small businesses, while strengthening Pennsylvania’s ability to compete nationally.”
Key highlights of the tax reform package:
- Close corporate loopholes
- Major national corporations — such as Amazon, Walmart, and FedEx — have used legal loopholes to shield their profits from Pennsylvania taxes, leaving them paying little-to-no taxes. This legislation would eliminate those gimmicks, ensuring that doing business in Pennsylvania, means paying taxes in Pennsylvania.
- Level the playing field for small businesses
- By closing the loophole, small businesses no longer must compete against mega-corporations playing by a different set of rules. This reform would ensure fairness across the board.
- Expedited corporate tax cut
- The Corporate Net Income Tax would be reduced annually until it reaches 4.99% in 2029, making it one of the most competitive rates in the country. This tax relief would incentivize job creation, attract investment, and strengthen local economies.
- Tax relief for workers
- Eliminate state taxes on tips, letting service industry workers keep more of what they earn.
- Remove state taxes on overtime, giving workers who go the extra mile more money in their pockets.
- Establish the Working Pennsylvanians Tax Credit
- This new tax credit would provide the average eligible Pennsylvania family with a tax break of $600 annually, rewarding hard work and easing the burden on middle-class families.
Burns said the legislation, which now goes to the state Senate for consideration, would create a tax code that works for everyone.
“This is common sense legislation built on fairness,” Burns said. “We’re putting more money in the hands of workers, helping small businesses thrive, and making Pennsylvania more attractive for companies looking to grow.”
When asked about the vote, Burns said: “This vote showed who really stands with the people of Pennsylvania and who cares about making the corporate billionaires happy.”