HARRISBURG (June 15, 2022) Legislation to help Pennsylvania families by gradually reducing the state’s Corporate Net Income tax was approved by the Senate today by a vote of 31 to 19.
“As the Keystone State, Pennsylvania is blessed with a prime location and an abundance of natural resources. Unfortunately, those assets cannot outweigh the fact that Pennsylvania has the third highest Corporate Net Income Tax Rate in the nation,” Brooks said. “At 9.99 percent, this high tax rate erodes the attractiveness of our state to the job-creators of today and tomorrow. It’s why many businesses are taking their headquarters and jobs out of state, and why so many talented young people are packing up and leaving for greener pastures and greater job opportunities.”
“Recent history tells a sad tale of opportunities missed—and jobs lost –because many lean businesses have sticker-shock over Pennsylvania’s excessively high Corporate Net Income Tax rate,” she added. “These businesses are not just the corporate powerhouses of the world; these are locally-owned and family-run businesses operated by friends and neighbors who had a dream that became the heart of our Main Streets, in hometowns across every one of our Districts.”
Specifically, Senate Bill 447 will reduce the CNI from its current rate by a half a percentage point every year, over a period of six years, until it reaches 6.99 percent, where it will remain thereafter.
This legislation helps Pennsylvania families, Brooks emphasized.
The bill now advances to the House of Representatives for their consideration.