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Midstate lawmaker pushes eliminating PA's 'death tax' for small businesses

Written by Craig Layne and Radio Pennsylvania | Mar 3, 2013 6:57 AM
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(Harrisburg) -- A midstate lawmaker is pushing to eliminate the so-called "death tax" for Pennsylvania's family businesses.

State Representative Stephen Bloom says his proposal would cost the state about nine million dollars in annual revenue.

However, the Cumberland County Republican says eliminating inheritance taxes on businesses will boost economic activity statewide.

"When we tax these assets in a small business, for example, at the death of one of the principal owners, oftentimes what happens practically speaking, is critical business assets have to be liquidated in order to pay the tax bill," Bloom says.

Opponents say the measure creates new loopholes and inequities in the system with no offsetting revenue.

Bloom's bill advanced out of the House Finance Committee and has been re-referred to the Appropriations Committee.

Bloom made his comments on witf's Radio Smart Talk.

Published in Cumberland County, News

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Comments: 1

  • annonymous1005 img 2013-03-03 18:26

    The state of Pennsylvania is in a state of austerity. This is only another unaffordable Republican tax reduction that adds to the state deficit.

    There is no financial analysis to document that tax reduction boosts economic growth. The exact opposite has been documented.

    It has been documented that by both The Pew Research Group and research by The New York Times that unaffordable tax breaks to business deplete revenues for infrastructure development and education of our work force.

    Also, as a business, if taxes are the reason that a business has failed, it is not because of the taxes themselves. But because of poor planning by that business, no interest or inability of the participants to continue the business, and that the market forces of capitalism allow that business to fail.

    We, as a state and a nation cannot continue to afford to prop up weak businesses or give business a free ride in the development of our infrastructure, a trained work force, and a quality of life that we need to attract business to the state and our nation.

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