|Posted:||April 11, 2019 09:19 AM|
|From:||Representative Mary Jo Daley|
|To:||All House members|
|Subject:||Corporate Tax Overhaul|
|In the near future, I will introduce Governor Wolf’s plan to improve the competitiveness of the Commonwealth’s economy by lowering the Corporate Net Income Tax (CNIT) rate while leveling the playing field for all businesses by requiring combined reporting by taxpayers that are part of a controlled group of corporations.
My legislation will step down the CNIT from the current 9.99% rate – the third highest in the nation – to 5.99% by 2024. This will make it easier to attract business development in the Commonwealth that will boost our economy and increase tax revenues.
At the same time, however, we need to inject some basic fairness into the system so that Pennsylvania businesses do not continue to pay the full rate of 9.99% while multistate corporations are able to shield income and create a lower tax burden. We can do that by joining the 27 other states that require the use of combined reporting by multi-state corporations.
Economists and tax experts alike have consistently told us that in order to sustain a fair and competitive tax structure, we should widen the base and then lower rates. Modernization is clearly the key to success and making these changes is a critical next step.
Please join me in co-sponsoring this important legislation so that we can bolster the Commonwealth’s economy and level the playing field for all businesses in Pennsylvania.
Introduced as HB1445