Pro-growth tax reform proposal to increase economic opportunity & upward mobility for Pennsylvanians passes Senate panel
(HARRISBURG) – Sen. Ryan Aument’s (R-36) bill to attract new employers and promote economic growth in the Commonwealth by gradually reducing the state’s corporate net income (CNI) tax rate using a performance-based mechanism passed the Senate Finance Committee today.
Senate Bill 771 would incrementally reduce the CNI tax from its current rate of 9.99% to 6.99% by 2024. The rate could then be further reduced only if it meets or exceeds the revenue projections for 2024 at the 9.99% rate.
This performance-based mechanism is unique from other proposals because it only reduces the CNI tax to its lowest rate if the benefits equal or outweigh the costs of cutting the tax. Otherwise, the tax will not be further cut.
In addition to helping the Commonwealth compete for new businesses and the jobs they create, the CNI tax rate reduction would provide more opportunities for residents to experience earned success and upward economic mobility.
“It is my hope that making Pennsylvania more economically competitive by lowering our CNI rate will benefit working class families, reverse our stagnant population growth, and ensure that Pennsylvania is an attractive place to live, work, and raise a family for generations to come,” Aument said.
Lowering the CNI tax rate would make Pennsylvania attractive to businesses and families when compared to other states. New York’s and West Virginia’s CNI is 6.5%, and Virginia’s CNI is 6%. Currently, only New Jersey has a higher rate than Pennsylvania.
Senate Bill 771 will now advance to the full Senate for consideration.
State Sen. Ryan Aument (R-36) speaks in the Capitol rotunda earlier this year.
CONTACT: Stephanie Applegate