|Posted:||March 31, 2021 03:31 PM|
|From:||Representative Mary Jo Daley|
|To:||All House members|
|Subject:||Combined Reporting - Corporate Net Income Tax (CNIT)|
Any domestic or foreign corporation that wishes to do business in Pennsylvania is subject to the Corporate Net Income Tax (CNIT). Currently, our CNIT is levied at 9.99 percent, the third highest in the nation. Economists and tax experts alike have advised that, in order to sustain a fair and competitive tax structure, it is necessary to widen the base and lower rates of the CNIT.
Modernization is clearly the key to success and making these changes is a critical next step, which is why my legislation will reduce the CNIT from the current 9.99 percent rate to 5.99 percent by 2026, per Governor Wolf’s plan to improve the competitiveness of Pennsylvania’s economy. This will make it easier to attract business development in Pennsylvania that will boost our economy and increase tax revenues. My legislation will also require the use of combined reporting by multi-state corporations to ensure that Pennsylvania businesses do not continue to pay the full CNIT tax rate while multi-state corporations are able to shield income and create a lower tax burden.
Please join me in co-sponsoring this important legislation so that we can bolster our economy and level the playing field for all businesses in Pennsylvania.
Introduced as HB1222