By Tony Romeo

HARRISBURG, Pa. (CBS) – The Pennsylvania House has passed and sent to the Senate a bill that would reform corporate taxes in the state.

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Supporters say the bill would offset a reduction in corporate net income tax rates by cracking down on companies that have headquarters or subsidiaries in Delaware and use that state’s tax-friendly policies to avoid paying Pennsylvania levies.

But, Allegheny County Democrat Frank Dermody, the House minority leader, complained that the bill will not do that.

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“It doesn’t close the ‘Delaware Loophole’,” Dermody said. “It is not about tax fairness.”

Allegheny County Republican Mike Turzai, the majority leader, insists that the measure will close the so-called ‘Delaware Loophole,’ “And ultimately begins in a slow fashion to reduce the rate so that we’re competitive with other states.”

The bill passed the House with bi-partisan support and now goes to the Senate. A similar bill passed the House last year, but did not clear the Senate before the two-year session ended in November.

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