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