PENNSYLVANIA — The Pennsylvania House of Representatives passed a contentious piece of legislation late Tuesday night, creating new tax incentives for medical marijuana operations and Hollywood movie studios. The bill, which was voted along party lines, also includes a complete revamp of Pennsylvania’s business tax code, leading to criticism from some quarters as one of the most aggressive tax proposals in the country.
Rep. John Lawrence (R-Chester) voiced strong opposition to the proposal on the House floor just before the vote. He criticized the hurried amendments made to an unrelated bill earlier that day, leaving House members with mere hours to review the details.
Rep. Lawrence took issue with the newly introduced corporate tax plan and the absence of tax reform for middle-class homeowners. He also expressed concern over the lack of discussion on the gasoline tax and the inclusion of tax breaks for marijuana growers.
The controversial tax plan was hastily inserted into House Bill 1219. The amended bill includes several provisions, such as diverting a third of a billion dollars from the state’s General Fund to mass transit operators.
In his address to the House chamber, Lawrence argued against this tax diversion scheme, stating it bypasses the annual budget process and lacks oversight. He termed it as a surrender of the constitutional authority of the chamber.
The bill also proposes a shift towards a complicated combined reporting tax scheme for businesses in the state, significantly increasing the authority of the Pennsylvania Department of Revenue.
Despite his criticisms, Lawrence acknowledged some positive aspects of the bill, such as the provision related to childcare tax credits and a reduction in the state’s corporate net income (CNI) tax.
However, he expressed disappointment at how quickly bipartisan efforts to reform the state’s tax system were discarded in favor of this partisan proposal.
House Bill 1219 now moves to the Senate for consideration. If enacted, the bill will introduce substantial changes to Pennsylvania’s tax system, impacting a wide range of areas from personal income tax to entertainment production credits.
To listen to Lawrence’s remarks on the bill, click here.
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