Apr. 10, 2018
HARRISBURG – In an effort to improve the Commonwealth’s job climate and our ability to attract and grow successful small businesses, the state House of Representatives today advanced legislation, authored by Rep. Stephen Bloom (R-Cumberland), to level the playing field for small business taxpayers in Pennsylvania.
“Small businesses create more than 65 percent of Pennsylvania jobs, but instead of encouraging them to grow, our outdated tax laws weigh them down with unfair rules and complex requirements,” Bloom said. “As lawmakers, it’s very important that we remove the obstacles our mom-and-pop businesses face, so they can grow jobs and reinvest in our communities.”
Bloom’s proposal,
House Bill 331, would allow for tax deferral in like-kind exchange transactions in Pennsylvania mirroring Internal Revenue Code Section 1031 provisions, thereby removing an unfair disadvantage Pennsylvania small businesses face in competing with businesses in other states.
“The misguided state tax rule my bill would eliminate is so unfair that Pennsylvania is the only state left in the entire nation which imposes it on its job creators,” Bloom said.
Under federal tax law, a “like-kind” exchange pursuant to Internal Revenue Code Section 1031 allows for tax deferral when property is exchanged for similar property. This long-standing federal provision facilitates efficient investment in the job-creating assets which businesses need to remain competitive, and every state but Pennsylvania provides for a similar deferral on the state level.
“Bringing Pennsylvania’s Tax Code in line with long-standing federal provisions will facilitate efficient investment in the job-creating assets our businesses need to remain competitive with other states,” Bloom said.
The National Federation of Independent Business (NFIB), which represents more than 15,000 small businesses in Pennsylvania, also expressed support for Bloom’s bill.
“This bill allowing like-kind exchanges will really encourage small business owners to expand and invest in growth, and that will help create jobs and improve Pennsylvania’s economy,” said Kevin Shivers, executive state director of NFIB-Pennsylvania. “There are a million small businesses in Pennsylvania and a surge in their growth due to a favorable tax climate would be a boon to all every resident. We are grateful to Rep. Bloom for sponsoring the bill.”
House Bill 331 now moves to the Senate for consideration.
Representative Stephen Bloom
199th District
Pennsylvania House of Representatives
Media Contact: Abbey Haslam
717.260.6222
ahaslam@pahousegop.com
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