Pa. House Votes To Plug Gap Letting Taxes Flow Out Of State

Law360, Philadelphia (May 6, 2013, 9:27 PM EDT) -- Pennsylvania lawmakers signed off on legislation Monday aimed at closing a loophole that allows corporations to transfer assets to out-of-state holding companies to minimize tax obligations, even as critics said it would cost Pennsylvania hundreds of millions of dollars in the long run by lowering corporate taxes.

The measure would force companies to add back certain transactions to their Pennsylvania taxable income, closing what's known as the Delaware loophole, after the state's tax-friendly neighbor. It would also lower the corporate net income tax from 9.99 percent 6.99...
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