Cumberland County Republican Rep. Stephen Bloom's bill to eliminate the inheritance tax on family-owned businesses unanimously passed the state House on Monday.
House Bill 48, which would end the so-called "death tax," could encourage mom-and-pop shops to continue to create jobs because they are not being punished with taxes during generational transitions, Bloom said.
"This unnecessary tax is destructive to the commonwealth's overall job climate and our ability to attract and grow successful family businesses," he said in a statement. "These 'mom-and-pop shops' create 65 percent of Pennsylvania jobs, but the death tax hits them hard at the most vulnerable time, too often forcing liquidations, layoffs and even closures."
Bloom previously championed for the elimination of inheritance taxes on the transfer of farm commodities when the assets are passed on to a surviving sibling or child. That bill passed last year.
H.B. 48 now moves on to the Senate.