Why Passing House Bill 2150 is Critical for Job Creation

By Warren Kampf
157th District

I was pleased to join the House in passing House Bill 2150-- historic tax reform legislation.

Pennsylvania is currently ranked 50th in the nation for Business Tax Burden, 39th in CEO Magazine’s list of the Best/Worst states in which to do business, and 30th by Forbes for businesses and careers.

This is unacceptable and we must make the changes needed to end this dismal record.

House Bill 2150, among other things, attempts to level the playing field for all companies doing business in Pennsylvania by closing what is sometimes called the Delaware Loophole. The legislation also gradually lowers what is the highest corporate tax rate in the nation.

By reducing our Corporate Net Income (CNI) Tax from 9.99 percent to 6.99 percent over six years, by moving to a single sales factor model for calculating tax, and by allowing our entrepreneurs to carry forward their early losses to offset later taxes, I believe with this legislation we will attract and retain employers. That will fuel economic growth and create jobs. Our current CNI Tax Rate is the highest in the nation, and along with these other items, has long stood as an obstacle to attracting job creators to the Commonwealth. We must make ourselves more attractive to job growth, or we will never achieve the prosperity all of our citizens deserve. HB 2150 is another step in the right direction.