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House of Representatives
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted:	December 21, 2021 09:20 AM
From:	Representative Robert W. Mercuri
To:	All House members
Subject:	A Simpler and More Certain Business Tax Environment

In the near future, I plan to introduce legislation that would further conform Pennsylvania’s tax laws with the federal government and create favorable tax policy for existing and prospective businesses within the Commonwealth.   We are all familiar with calls to reform Pennsylvania’s current 9.99% CNIT rate, the highest flat tax rate in the country, and given the sticker shock of this rate as well as testimony of the competitive disadvantage it represents, such calls need to be made and heard. But what cannot be forgotten is the host of other complexities and challenges that businesses face while navigating Pennsylvania’s tax laws.     In recent legislative sessions, an emphasis has been placed on achieving simplicity by conforming with Federal tax laws where it is appropriate and advantageous to do so. This has led to the consideration of countless pieces of legislation, amending nearly every article of the Tax Reform Code of 1971, for the benefit of our constituencies.  My legislation builds upon these efforts by proposing further changes relating to the depreciation of assets owned by businesses and the determination of basis for property that is sold or otherwise disposed of during a taxable year.   It is essential that we take steps now to make it simple and advantageous to do business within the Commonwealth, positioning our communities for investment and growth as we continue to recover from the economic uncertainty that has arisen as a result of COVID-19 policies.   I respectfully ask for your consideration to join me as a co-sponsor of this legislation.

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