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Piccola's Business Tax Proposal Endorsed by Finance Committee
HARRISBURG -- Senate
Majority Whip Jeff Piccola (R-15) commended the Senate Finance Committee today
for its approval of Senate Bill 380, legislation that would help improve the
state's job climate by reducing a major tax burden for many employers and
benefiting companies investing in Pennsylvania.
Pennsylvania's Corporate Net
Income (CNI) tax is currently comprised of three components: sales, property,
and payroll. Prior to 1999, each of these factors counted as one-third in the
calculation of an employer's CNI tax. Under Senate Bill 380, the state's CNI
tax would be changed to a Single Sales Factor.
“This change would represent an
important and sorely needed step to encourage job creation and growth in the
Commonwealth. A Single Sales Factor provides an economic incentive for
companies to expand or locate in Pennsylvania. It would also positively impact
existing employers and reward companies with property and payroll,” said
Piccola.
Piccola's legislation is part
of the Keystone Manufacturing Initiative (KMI), a package of bills specifically
designed to reestablish Pennsylvania as a competitor for jobs and job
opportunities. Piccola has also sponsored several other KMI initiatives that
relate to: reducing the Commonwealth's CNI tax, restoring fairness, common
sense, and personal responsibility to an expensive legal system that promotes
lawsuit abuse, and eliminating red tape, regulations, and other costs that make
Pennsylvania less competitive.
“I think it's obvious that the
simplest, most cost effective tax change for Pennsylvania is the enactment of
the Single Sales Factor. In order to remain competitive, we can – and should –
make positive changes to our tax structures. This change will help reduce the
burden among not only our businesses but also the Commonwealth's citizens,” he
added.
“Pennsylvania is home to a
number of successful companies – both large and small, which provide quality
jobs for area residents. Although our workforce is second to none, we need to
do more to create and maintain more jobs here by lowering the cost of doing
business for employers in the state,” said Piccola.
“Senate Bill 380 will
positively impact business investment and go a long way to promoting the
protection and growth of jobs. I am pleased the committee has endorsed this
important measure, and I urge the Senate's immediate consideration,” he said.
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