Pennsylvania chambers call for reduction in Corporate Net Income Tax

Chambers from across the commonwealth joined together today to call for a material reduction in Pennsylvania’s Corporate Net Income Tax. 

More than 45 local chambers joined the PA Chamber of Business and Industry, The Chamber of Commerce for Greater Philadelphia, and The Greater Pittsburgh Chamber of Commerce in denouncing the 9.99 % rate, the highest non-graduated Corporate Net Income Tax in the country, they said. 

  The issue, which has seen growing bipartisan support over the past several months, has been a top priority of the state’s broad-based business community as a great way to improve Pennsylvania’s overall competitiveness.   

In a letter sent to members of the state’s General Assembly, the business leaders noted that with the commonwealth at a critical juncture in recovering from the pandemic and setting the course for a bright, bold economic future, the benefits of a CNI reduction go far beyond attracting new business and investment.  

 Studies have shown that a decrease in the CNI tax rate would increase GDP, boost wages, increase home values, create family sustaining jobs and attract and retain new talent, they said.  

“The reality is, Pennsylvania’s excessively high CNI Tax rate has always detracted investment, resulting in billions of dollars in lost revenue and driving companies and job opportunities to other states,” said PA Chamber President Gene Barr.  “As we collectively look towards our long-term, post-pandemic recovery, reducing the CNI is a critical step toward improving the Commonwealth’s overall competitiveness and putting us on the path toward a prosperous economic future.”  

Rob Wonderling, president and CEO of the Chamber of Commerce for Greater Philadelphia said, “we urge members of the General Assembly to pass meaningful tax reform legislation this session and prioritize policies that promote economic growth. High corporate net income taxes slows employment growth and is a barrier to attracting new enterprises. In today’s difficult economic climate there is not a moment to lose.”  

 Proposals have been introduced in both the state Senate and House of Representatives that would lower the Commonwealth’s CNI Tax rate.  In his 2022-23 budget proposal, Gov. Tom Wolf also called for an immediate rate reduction to 7.99 % with a gradual reduction in the rate over the course of five years.  

 As lawmakers and the Wolf administration negotiate the coming year’s spending plan, the business community is urging a material reduction in the CNI Tax rate be included in the final compromise.