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House Co-Sponsorship Memoranda
House of Representatives
Session of 2017 - 2018
Regular Session
MEMORANDUM
| Posted: | August 16, 2017 01:59 PM |
|---|---|
| From: | Representative Greg Rothman |
| To: | All House members |
| Subject: | Corporate Net Income Tax Reduction |
In the near future, I plan to introduce legislation to improve the business climate in Pennsylvania and to align the income tax rate on all businesses by reducing the Corporate Net Income Tax rate from 9.99% to 3.07%. As my mentor Jack Kemp used to say, “Every time in this century we’ve lowered the tax rates across the board, on employment, on saving, investment and risk-taking in this economy, revenues went up, not down.” Pennsylvania’s Corporate Net Income Tax rate, the 2nd highest in the country, stifles economic growth and hurts our ability to be competitive by discouraging businesses from developing in the Commonwealth. The Tax Foundation ranked Pennsylvania 24th this year in business tax competitiveness overall, and 44th of the states that levy a corporate net income tax. My bill will take Pennsylvania’s Corporate Net Income Tax rate from 9.99% to 3.07% upon passage. Not only will this align the income tax rate for all businesses impetrating in Pennsylvania, but it will also make our Commonwealth more competitive with neighboring states, such as West Virginia and New York, whose CNI in 2016 was 6.50%. A vast majority of businesses in Pennsylvania file as Limited Liability Corporations (LLC), General or Limited Partnerships and are taxed at 3.07%. The corporations taxed at 9.99% are often out of state or national companies that do not need to come to our Commonwealth to do business and create jobs. This legislation will help attract jobs to the state, while creating a fair and flat tax rate on all businesses. Please join me in co-sponsoring this legislation to improve our economy and generate more revenue for the general fund. If you have any questions regarding this legislation, please contact my office at 717- 783-2063. |
Introduced as HB1791