Aument Bill to Attract More Employers and Residents to PA Passes Senate

Pro-growth policy to create family-sustaining jobs and expand economic opportunity for all Pennsylvanians advances

HARRISBURG – Legislation sponsored by Sen. Ryan Aument (R-36) to incentivize more people and employers to move to Pennsylvania received bipartisan support from the Senate today.

Senate Bill 771 would gradually reduce the state’s Corporate Net Income (CNI) Tax from its current rate of 9.99% to 6.99% by 2024 to attract new employers and promote economic growth. The rate could then be further reduced only if it meets or exceeds the revenue projections for 2024 at the 9.99% rate.

After the results of the 2020 Census showed that Pennsylvania’s population growth has lagged behind most other states, Pennsylvania was stripped of yet another seat in Congress. This is a continuation of the Commonwealth losing at least one Congressional seat in all of the last 10 censuses, beginning in 1930.

“Not only is the state’s inability to retain residents or attract new ones costing us political influence in Washington, it also separates families as younger generations pursue jobs in other states with greater promise of upward mobility,” Aument said. “Reducing our state’s CNI tax would directly address our ongoing issues with outbound migration while also providing real, tangible benefits to Commonwealth residents.”

Research shows that in addition to creating better job opportunities and a more favorable business climate, lowering a state’s CNI tax rate:

  • Increases population by incentivizing more people to move here,
  • Elevates home values in local communities,
  • Raises workers’ wages, and
  • Does so without negatively impacting state revenue.

“My focus has always been on policies that will position Pennsylvanians for economic success and upward mobility for generations to come,” added Aument. “The benefits of a CNI tax cut will reach beyond the next few months and ensure Pennsylvania not only recovers from the financial hardships of this recession in the near term, but also thrives in the long term.”

The bill now moves to the House of Representatives for consideration.

WEBPAGE: CNI Reduction

CONTACT: Stephanie Applegate

 

Aument Advocates for Cutting Taxes, Creating Jobs, & Protecting Communities in 2022-23 Budget

Rejecting one-time fixes proposed by Democrats, Aument’s priorities include policies that permanently position PA to succeed

HARRISBURG – As the effort to pass the 2022-23 state budget is now in full swing, Sen. Ryan Aument (R-36) announced his budget priorities. His goals focus on increasing economic opportunity for Pennsylvanians, improving public safety, and positioning students for success in their future careers.

To increase economic opportunity and address the devastating effects of inflation on families, Aument will advocate for a reduction in both the Personal Income Tax (PIT) and Corporate Net Income (CNI) Tax.

Senate Bill 771, his legislation to gradually reduce the state’s CNI tax to attract new employers and promote economic growth, already received support from the Senate Finance Committee. In an effort to make Pennsylvania’s rate more competitive with neighboring states, the bill would 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.

“Together, a reduction in both the PIT and CNI taxes would help every Pennsylvania taxpayer at a time when they have been beaten down by inflation and the rising costs of necessities like food and gas,” Aument said. “We must reject reckless, inflationary fiscal policies like those of President Joe Biden that have created such significant financial strain, and instead focus on policies that will position Pennsylvanians for economic success and upward mobility for generations to come. Band aid solutions – like Gov. Tom Wolf’s proposal to give a one-time check to every household with an income of less than $80,000 – won’t cut it.”

Improving public safety is another important initiative for Aument, who will focus on advancing reforms to boost police officer recruitment and retention by increasing funding for new Pennsylvania State Police classes and making a career in law enforcement eligible for an existing scholarship.

Aument is also working to improve public safety by advocating for increased mental health funding in Pennsylvania schools and communities.

Finally, Aument is pushing for an initiative that would strengthen Pennsylvania’s economy by preparing students for in-demand, family-sustaining careers. A bill Aument sponsored would redesign the state’s education system to better prepare students for the jobs of today and tomorrow, especially in sectors that are vulnerable to job losses due to automation.

Aument also believes the General Assembly should reengage the Higher Education Funding Commission to continue its work in improving how the state funds institutions of higher education in the Commonwealth.

“While I work to advance these important initiatives this budget season, I will continue to push for fiscal responsibility and work to block any new taxes that would only serve to burden our residents at a time when they can least afford it. I will continue to focus on policies that promote growth, create family-sustaining jobs, and expand economic opportunity for all Pennsylvanians,” Aument said.

Sen. Ryan Aument (R-36) speaks with reporters in the State Capitol following Gov. Tom Wolf’s budget proposal in February 2022.

CONTACT: Stephanie Applegate

Aument Bill to Create Jobs, Attract Employers Advances

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

Statement: ‘Wolf’s Budget is Recklessly Balanced on Biden’s Inflationary Policies’

‘Wolf is all but promising future tax increases with the excessive spending in this budget plan’

HARRISBURG – Sen. Ryan Aument (R-36) released the following statement in response to Gov. Tom Wolf’s final budget address, made before the General Assembly today:

“While Gov. Tom Wolf’s budget proposal does not include any tax increases, his plan relies on manipulative accounting gimmicks that downplay expenses while inflating anticipated revenue. Because of that, we project a $13 billion deficit – which is nearly a third of what the governor is proposing to spend – by the fiscal year 2026-27.

“Fiscal responsibility is not a short-term goal, it’s a long-term policy. We need to protect Pennsylvanians not only from immediate tax increases but also from future tax increases. To be clear, a future tax increase will be necessary if we agree to fund Governor Wolf’s reckless budget proposal.

“So many people are already struggling due to the rising costs of everything from food to rent to energy bills. During a period of historic, out of control inflation brought on by irresponsible policies handed down from the Biden Administration, we must shield taxpayers from further strain on their household budgets.

“Balancing our budget on one-time funding from the Biden Administration will set our Commonwealth up for failure when that money inevitably runs out. If we want to foster a Pennsylvania where every resident has the opportunity to experience earned success and upward economic mobility, we must advance a fiscal plan that doesn’t rely so heavily on federal funds to balance this and future budgets.

“I believe the path to fiscal solvency is through pro-growth economic policies and protecting taxpayers from reckless spending. To that end, I was pleased that the governor’s proposal included a reduction in the Corporate Net Income (CNI) tax rate, a policy that I’ve been advocating for to promote growth, create family-sustaining jobs, and expand economic opportunity in our state.

Studies have shown that a reduction in the CNI tax results in increased wages and home values, as well as population, which is important since Pennsylvania has lost Congressional seats in every census since 1930, including the most recent one.

“As always, I will continue to work with my colleagues in the General Assembly for the benefit of district residents as we consider the governor’s suggestions and draft a budget that gives Pennsylvania the greatest chance for success not only in the next year but for generations to come.”

CONTACT:  Stephanie Applegate, 717-787-4420

Op-Ed: Decrease the CNI Tax Rate to Increase Economic Opportunity in PA

Senator Aument speaks about economic opportunity and the vision for Pennsylvania’s future.

As we emerge from the COVID-19 pandemic, it’s time we revisit the conversation around economic opportunity and a vision for the future of Pennsylvania.

After the preliminary 2020 Census data was released earlier this year, we learned that Pennsylvania’s population growth has been so stagnant that we again lost a seat in Congress. This is the continuation of an unfortunate trend where the Commonwealth has consistently lost at least one Congressional seat in all of the last 10 censuses beginning in 1930.

The state’s inability to retain residents or attract new ones has cost us political influence in Washington.

Beyond our diminishing power in the nation’s capital, many Pennsylvanians have seen this outbound migration in action as they watch the dream of having their children live nearby fade away as economic opportunity pulls our younger generations out of the Commonwealth to jobs in other states where there’s greater promise of upward mobility.

Pennsylvania 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 consistently ranks amongst the worst states for business, claiming one of the highest corporate net income tax rates in the country, second only to New Jersey. With Pennsylvania’s current rate of 9.99%, we’re at a tremendous competitive disadvantage compared to most of our neighboring states who boast rates of around 6 to 6.5%.

We must take action to counter this population trend, incentivize working professionals and families to move here and stay here, and create economic opportunity for all our residents – the first step to achieving those goals is to make the state’s Corporate Net Income (CNI) tax rate competitive with that of neighboring states.

Data suggests that doing so would not only increase our population, but also increase home values AND wages for our residents all without negatively impacting state revenue.

Based on data from the U.S. census, research shows that lower corporate income tax rates are associated with higher rates of population growth. Additionally, interstate migration trends in 2019 show that many more people move to states with lower CNI rates than move to states with a higher rate, supporting the claim that states with lower CNI rates have more favorable business climates and better job opportunities.

Specifically, data modeling projects that lowering the CNI by one point can increase Pennsylvania’s population by an additional 18,000 people in the first year and that population will continue to grow each year thereafter.

Bottom line – reducing our state’s CNI rate would directly address our ongoing issues with outbound migration while at the same time providing real, tangible benefits to those who reside here in the Commonwealth.

In fact, lowering a state’s CNI rate is associated with increased growth in home values.

For the period between 2010-2020, data analysis shows that the 23 states with the lowest CNI rates experienced significant growth in typical home value compared to the 23 states with the highest CNI rates.

But perhaps the most compelling argument for lowering the CNI is the benefit that it would provide to Pennsylvania working families. Decades of research demonstrate that there is a direct correlation between lower CNI rates and higher wages for working class families.

Unfortunately, when politicians talk about lowering corporate taxes, many middle- and lower-class working families are skeptical that such a policy would benefit them. Though many believe that reducing corporate taxes would only help upper-class CEOs and large corporations, the data clearly shows that this is false and that individual employees and their families will also benefit greatly by enjoying higher wages.

Specifically, research shows that a one-percentage-point decrease in the top marginal CNI tax rate would lead to a meaningful increase of up to $223.35 in workers’ wages in our state based on annual mean wage in Pennsylvania in 2020.

Despite all the data showing the benefits of a competitive CNI rate, opponents usually claim that doing so would decrease state revenue thereby negatively impacting many vital state programs funded through the collection of CNI taxes.

However, states with the lowest CNI rates experienced 10% higher growth in state revenues from 2000 to 2020 compared to those states with higher CNI rates.

In summary, not only does the data show a strong connection between lower CNI rates and higher population, home values, and workers’ wages, but these goals are able to be achieved without impacting general fund revenue or raising taxes on Pennsylvanians.

For that reason, I have proposed Senate Bill 771 which would gradually reduce the state’s CNI tax rate to attract new employers and promote economic growth in the Commonwealth.

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.

It’s time to build a stronger Pennsylvania where entrepreneurship, innovation, and economic opportunity can thrive – a Pennsylvania where each and every resident has the opportunity to experience earned success and upward economic mobility.

Press Release: Aument Introduces Bill to Create Employment Opportunities, Attract Employers

(HARRISBURG) – To attract new employers and promote economic growth in the Commonwealth, Senator Ryan Aument (R-36) announced his intent to introduce legislation that would gradually reduce the state’s corporate net income (CNI) tax rate using a performance-based mechanism.

The proposal 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 economic success of lowering it can be shown through revenue projections. In other words, the benefits must equal or outweigh the costs of cutting the tax, or else 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.

“As the 2020 Census data demonstrated, Pennsylvania’s population growth has been nearly stagnant. Many of us have seen it in action as children grow up and get jobs in other states where there’s greater economic opportunity. It has resulted in the state’s loss of a congressional seat,” Aument said. “We must take action to counter this population trend, incentivize working professionals and families to move here and stay here, and create economic opportunity for our residents – the first step to achieving those goals is to make the state’s CNI tax rate competitive with that of neighboring states.”

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.

 

CONTACT:  Stephanie Applegate, 717-787-4420