(4 hours ago) Southeast Delegation
HARRISBURG, June 27 – Legislation to close the “ Delaware loophole ” and institute combined reporting was approved by the Pennsylvania House of Representatives Wednesday. HB1610 was introduced by Rep. Elizabeth Fiedler , D-Phila., and Rep. Mary Jo Daley , D-Montgomery. This is the first time the House has passed a bill that would truly close the loophole in state law. In Pennsylvania, it is perfectly legal for highly profitable, multi-state corporations to shield their profits in states like Delaware, that have low or no corporate net income taxes. Combined reporting simply closes that loophole by requiring companies making profits in Pennsylvania, report to Pennsylvania. "When 73% of the corporations active in this state pay no corporate taxes at all — and working people struggle to afford the basics — that's not fairness, that's exploitation,” Fiedler said. “It’s ridiculous, puts small businesses at a disadvantage, and leaves our public services without adequate funding. We can generate millions by closing this loophole alone." Thanks in part to corporate tax loopholes, Pennsylvania has one of the most regressive tax structures in the nation. When multi-state corporations pay less than their fair share, a greater tax burden is placed on Pennsylvania-based companies, small businesses, and individual taxpayers. “Just like every hard-working Pennsylvanian has to Read more