Republican lawmakers in the state House and Senate, joined by business leaders, are introducing bills to give bring some state tax policies in line with federal laws for small businesses.
The three bill–package would let small businesses take a $1 million tax deduction for new equipment — matching a new standard passed in the 2017 tax cuts — as well as let small businesses deduct their net operating losses from their tax bill.
The National Federation of Independent Business, a pro-business advocacy group representing small employers, says that Pennsylvania’s corporate taxpayers can already take advantage of the latter benefit. They have pitched the package as a well to level the playing field between corporations and smaller companies.
One other policy, which the NFIB says every other state has, would let businesses not pay a realty transfer tax when trading a vacant piece of property for a new piece of property. It is already in national tax policy.
Troy Spackman, a 36-year old business owner in York, Pa., said at a press conference that the bills could help reduce his tax burden.
Spackman said he owns a custom car business, as well as a construction business that makes custom buildings and rooms —”man-cave type stuff,” Spackman said.
He pays $163,000 in taxes — enough to employ three additional employees if he kept those dollars, he said.
“I feel like I pay my fair share,” Spackman said.
The Tax Foundation, a national anti-tax think tank, ranked Pennsylvania’s business tax climate 34th in the nation. The state’s corporate income tax is 9.99 percent — among the highest in the country.
The Small Business and Entrepreneurship Council, a national business group, gave the same ratings for Pennsylvania’s overall small business policies.