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06/13/2021 11:35 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20210&cosponId=35704
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Senate of Pennsylvania
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted: May 21, 2021 02:52 PM
From: Senator Ryan P. Aument
To: All Senate members
Subject: Performance-based CNI Reduction
 
With the news that Pennsylvania will lose a congressional seat following the 2020 Census, the reality and implications of our nearly stagnant population growth cannot be ignored.  For decades, parents have seen the dream of having their kids live nearby fade away as economic opportunity pulls our younger generations out of the Commonwealth.  And now Pennsylvania will have less representation to carry our voices to Washington at a time when national leaders need to hear us most.

In order to counter this population trend, the Commonwealth needs to be a place where every resident has the opportunity, and where new residents come, to experience earned success and upward economic mobility. We need to compete for new businesses and industry, and the jobs they create, to do just that. Unfortunately, Pennsylvania is consistently ranked amongst the worst state for business, claiming one of the highest corporate net income tax rates in the country, second only to New Jersey.

To that end, I am proposing a reduction in the state’s corporate net income tax rate which is currently 9.99%.  In my proposal, the tax rate would drop to:
  • 8.99% in 2022
  • 7.99% in 2023
  • 6.99% in 2024
Then, if the revenue generated at 6.99% in 2024 matches or exceeds the Independent Fiscal Office (IFO) revenue projection for 2024 at the 9.99% rate, the rate would drop further to 5.99% in 2025.

It’s important to note that the 5.99% corporate net income tax rate would finally make us competitive with our neighboring states who have similar rates (NY – 6.5%, WV – 6.5%, VA – 6%).  Further, this approach is an acknowledgement of the importance of performance-based budgeting.  

Please join me in sponsoring this proposal to make Pennsylvania a competitive state in attracting economic opportunity and families, alike.