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Pa. House approves business tax cut bill

HARRISBURG — A proposal to cut business taxes and attempt to close the much-maligned “Delaware loophole” passed the state House by a comfortable margin on Wednesday over Democratic objections that it would cost billions in the coming years.

The Republican-controlled House voted 129-58 to cut the corporate net income tax rate from 10 percent to 7 percent over six years, and make other business-friendly tax changes.

Democrats framed it as a massive giveaway that was not appropriate as the state is cutting deeply into education and human services to cope with dwindling tax revenues.

“We should not be giving $3.3 billion back to some of the wealthiest corporations in the world,” said Minority Leader Frank Dermody, D-Allegheny.

Democrats said that would be the price of the bill’s tax cuts over eight years, but with the additional revenues it would generate, they said the bill would cost taxpayers about $2.5 billion.

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