Go Back to the Drawing Board on Reed Loophole Bill
HARRISBURG, PA (April 2, 2012) — Pennsylvania Budget and Policy Center Director Sharon Ward issued the following statement on the House Finance Committee vote to advance House Bill 2150, legislation that would close one of Pennsylvania’s major tax loopholes and enact significant new business tax cuts.
“The House Finance Committee today took a small step to address the problem of corporate tax loopholes, but that step comes at a price that Pennsylvania cannot afford.
“HB 2150 will drain three-quarters of a billion from the state treasury annually by the end of the decade and will guarantee permanent underfunding of state colleges, public schools and health care services.
“This action undermines Pennsylvania’s long-term economic growth by putting funding for these investments at risk. To enact major tax cuts at the same time the state is considering 20% cuts to colleges and human services, and when more than a dozen school districts are faced with severe fiscal distress, is nothing short of irresponsible.
“The General Assembly should put the brakes on this bill, and ensure that Pennsylvania moves forward with a spending plan that it can afford.”