|Posted:||December 20, 2017 04:16 PM|
|From:||Representative Seth M. Grove|
|To:||All House members|
|Subject:||The Pennsylvania Tax Cuts and Jobs Act|
|After more than 3 decades Congress has passed the first major tax reform legislation since Ronald Reagan was President. This historic legislation will end the economic stagnation of the slowest economic recovery since World War 2. As economic growth exceeds 3% Pennsylvania has two choices either to follow suit or be left behind. Over the past decade the Commonwealth of Pennsylvania has averaged economic growth around 2% or lower while being in the bottom 10 states in job creation for most of those years.
In order to piggyback on the positive attributes included in the Federal Tax Cuts and Jobs Act, I plan to introduce the Pennsylvania Tax Cuts and Jobs Act. This legislation will reduce the tax burden of middle class Pennsylvanians by cutting the Personal Income Tax down to 2.8% during the 2019-2020 fiscal year.
This rate reduction would lower the personal income tax to pre-Rendell levels and save the average taxpayer hundreds of dollars. At the same time this cut would reduce the tax rate on small businesses by 9% which would allow job creators to invest more into their workers or hire more employees.
While Pennsylvania does not lead the nation in job creation we do lead the country with the highest flat corporate tax and the highest amount of welfare provided to corporations. Under the Pennsylvania Tax Cuts and Jobs Act this would end. The legislation would drop the Corporate Net Income tax down to 4%.
This new tax rate would provide Pennsylvania with a competitive advantage over our neighboring states to attract companies to move or expand their operations in Pennsylvania. The cut in the state corporate tax would take place over 5 years starting in the year 2020-2021 and ending 2025-2026. This tax cut would be expressly paid for by ending corporate welfare and economic growth.
Please join me and co-sponsor this legislation which will jump start our economy, create jobs and strengthen our middle class.