A York County lawmaker is seeking support for legislation that would cut Pennsylvania’s corporate net income tax.
Rep. Seth Grove, a Republican, is circulating a co-sponsorship memo for a measure that would cut the rate from 9.99 percent to 6.49 percent Grove says that would spur economic growth and create more jobs in the state.
Grove spokesman Jordan Grant said the current tax is one of the highest in the nation and that the proposed rate would be more competitive.
“The average flat tax rate across the country, including the District of Columbia, is roughly 6.67 percent,” Grant wrote in an email. “The new rate would put Pennsylvania at a competitive advantage for attracting job creators to locate their business in the commonwealth. In order to responsibly balance the budget, the proposed legislation would reduce the tax rate by 0.5 percent a year.”
As evidence the tax cut would create more revenue, he cites the phase-out of the capital stock and franchise tax, which was backed by Gov. Tom Corbett in 2011. The commonwealth saw a reduction of about $300 million in revenue during that time while its corporate net income tax revenue increased by $800 million and personal income tax revenue increase by more than $1 billion, Grove states in his memo.
“The increases in revenue came from economic growth; as companies (expanded) and additional Pennsylvanian jobs were created,” he wrote.
Members of the General Assembly are to open the 2015-16 session today.