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House Co-Sponsorship Memoranda
House of Representatives
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | February 18, 2021 09:56 AM |
|---|---|
| From: | Representative Natalie Mihalek |
| To: | All House members |
| Subject: | Low Income Tax Relief and Business Attraction Legislation |
| In the near future, I plan to introduce legislation to assist the recovery efforts of the Commonwealth by providing additional tax relief for families and fostering a climate aimed at attracting businesses and the economic opportunities they present. The global health pandemic has taken a tremendous toll on the Commonwealth: tens of thousands of hardworking Pennsylvanians have left the workforce or become unemployed altogether, and our businesses, who serve as the cornerstones of our communities, are struggling to survive. Unfortunately, a significant number have been forced to close for good, unable to weather the economic toll of the pandemic and the unnecessary forced closures of the Governor, leaving a void left unfilled across Pennsylvania. When the Governor unveiled his budget proposal earlier this month, I was hopeful that it would create a roadmap for the successful navigation of the challenges that we, as a Commonwealth, have been presented. Instead, he delivered a series of empty promises for struggling Pennsylvanians and a tax increase, an astonishing 46.25%, to our Personal Income Tax at a time when so many hardworking Pennsylvanians, their families, and our businesses, are already on their last rope. However, there is one point that the Governor and I do agree upon: that our lowest wage earners should not bear the burden of our Personal Income Tax. In my view, our businesses, and Pennsylvania’s marketability to prospective businesses, would be well served if we were to finally take steps to reduce our Corporate Net Income Tax, one of the highest in the nation and one of the largest barriers to attracting businesses to even consider establishing in, or relocating to, Pennsylvania communities. Failure to act will result in further adverse impacts for the Commonwealth. As an alternative to the Governor’s illogical proposal, I will be introducing legislation that provides tax relief for our working families by adjusting the special poverty provision tax exemption thresholds for inflation, something that has not been done in nearly two decades. Additionally, my proposal will reduce the CNIT tax rate by 1% each year over the next four years, reaching 5.99% for taxable years beginning January 1, 2025, in order to provide real relief to our businesses now and create an attractive environment for businesses to come to Pennsylvania in the years ahead. This is no time for ideological experiments, but rather the time for real leadership, real relief, and a real path forward for economic growth. Coupling tax relief for low-income Pennsylvanians with the removal of a major barrier to business attraction and investment should be a key, bipartisan ingredient to our economic recovery. As such, I am respectfully asking for your consideration to join me in this effort and lay a foundation upon which Pennsylvania residents, and the Commonwealth as a whole, will prosper yet again. I look forward to working with you on this legislation, which is part of the Commonwealth’s COVID Comeback legislative package. Please consider joining me in becoming a co-sponsor. |
Introduced as HB603