In a recent session, the Pennsylvania House of Representatives passed legislation introducing new tax incentives for medical marijuana operations and Hollywood movie studios. The bill also included significant changes to the state’s business tax code, which some have described as “punitive and aggressive.”
Representative John Lawrence (R-Chester) criticized the proposal during a speech on the House floor. He highlighted that lawmakers had limited time to review the amendments, which were added to an unrelated bill earlier in the day. “What is in front of us tonight? A bill with an onerous new corporate tax plan on businesses in this state,” Lawrence stated.
The amended bill proposes diverting $333 million from Pennsylvania’s General Fund to mass transit operators. Lawrence argued against this move, saying it bypasses the annual budget process and lacks oversight. “It is bad governance to spend a third of a billion taxpayer dollars a year on a standing basis outside the normal budget process with no oversight from this chamber,” he said.
Additionally, the legislation introduces a combined reporting tax scheme for businesses and increases the authority of the Pennsylvania Department of Revenue. Lawrence expressed concern that these measures could drive businesses out of state due to increased complexity and potential audits.
Despite his criticisms, Lawrence acknowledged positive aspects of the bill, such as provisions for childcare tax credits and a reduction in corporate net income (CNI) tax. Earlier proposals for CNI cuts received bipartisan support.
Lawrence concluded by contrasting recent bipartisan efforts with what he termed a “naked partisan proposal” that narrowly passed in the House by one vote. The legislation now moves to the Senate for further consideration.
