Pennsylvania House Republicans Hail Bipartisan Vote to Cut Corporate Tax

Pennsylvania Republican lawmakers voiced optimism last week that the commonwealth’s onerous Corporate Net Income Tax (CNIT) might finally soon get reduced, given a recent overwhelming State House vote to do so.

At 9.99 percent, the Keystone State’s CNIT is the second-highest in the country. A bill by Representative Joshua Kail (R-Monaca) would reduce the rate to 8.99 percent. His legislation passed the House of Representatives 195-8.

House Appropriations Chairman Stan Saylor (R-Red Lion) and other GOP representatives from York County issued a statement celebrating the vote to advance the bill, which now awaits consideration by the State Senate.

“This bill puts Pennsylvania on the map to better compete with neighboring states and attract and retain great jobs,” they said. “By cutting taxes, we expect to see business growth, leading to more family-sustaining jobs for Pennsylvanians. It would produce a stronger Pennsylvania, with a strong job market and stronger communities.”

Saylor and his colleagues estimate that the bill would provide relief for 93,000 Pennsylvania businesses.

Kail’s bill originated as a proposal to increase the amount of net-operating loss that entities are able to apply as a deduction against future taxable gains. Current law caps that deduction to apply only up to 40 percent of taxable income in the next year.

The House Appropriations Committed voted last week in favor of an amendment to include a roughly one-tenth reduction in the tax rate. Most committee Democrats joined Republicans in generally backing the legislation but none backed the amendment effecting a rate reduction…. (Excerpt from the Pennsylvania Daily Star)