December 17, 2012

Pennsylvania Budget and Policy Center: Bill Won’t Close Tax Loopholes But Will Erode Quality of PA Schools and Services

ITEP Work in Action

“The debate over House Bill 2150 made clear that this bill was never about closing corporate tax loopholes. Instead, it will put in place a billion dollars in corporate tax cuts that will cripple the commonwealth’s ability to provide education, health care and human services for Pennsylvania families.

The tax cut plan in HB 2150 is so costly that even Gov. Tom Corbett’s administration has voiced concerns about it.

HB 2150 offers the worst of both worlds, allowing companies to continue to avoid state taxes and giving them big tax cuts with no commitment to create jobs. HB 2150 offers only one guarantee, making corporations richer and citizens poorer.

Promoting tax cuts that undermine the commonwealth’s ability to meet its obligations — and result in a long-term erosion to the quality of schools, colleges and public services — will weaken Pennsylvania’s economy rather than strengthen it.

The General Assembly needs to act cautiously and responsibly when enacting spending increases or tax cuts. HB 2150 throws caution to the wind and ensures difficult budgets, large service cuts and higher local taxes for many years to come.”

Read the Full Report (PDF)