Leg­is­la­tors should ap­prove Pennsylvania cor­po­rate tax cut

The Pittsburgh Post-Gazette ^ | March 6, 2022 | Editorial Board

[Tolerance Sucks Rocks]

Gov. Tom Wolf and the Republican-controlled state legislature have found something to agree on: Pennsylvania’s corporate net income tax, the second-highest in the nation, costs the state more in lost business than it collects in revenue.

The legislature should immediately pass the outgoing governor’s proposal to cut the corporate tax from 9.99% to 7.99% starting in 2023. That would move the state outside the top 10 highest CNI states, although it would still leave Pennsylvania at a disadvantage compared to nearby competitors like New York (6.5%) and Virginia (6%).

After that, there are two ideas on the table for lowering the tax further.

Mr. Wolf’s budget proposal includes further cuts of 1% each in 2026 and 2027, bringing the final rate to 5.99%. Republican Senate Leader Ryan Aument of Lancaster County favors a more tailored approach. His bill would bring the rate down to 6.99% through 2024. After that, the rate would continue to lower annually — but only if corporate tax revenues are projected to match or exceed the previous year’s.

The theory is that a lower CNI rate will attract further investment, both from in-state businesses expanding and out-of-state businesses locating here, thereby increasing tax revenues.

Mr. Aument’s approach doesn’t take the theory for granted: It tests the theory. If it works out and a corporate tax cut is revenue neutral, or better, all by itself, then keep cutting. If revenue plateaus, the state can stand pat. That makes a lot of sense.

[Tolerance Sucks Rocks]

The Post-Gazette advocates a tax cut.

[Pete Dovgan]

What happened to soak the rich?
Corporations fleeing Pennsylvania democrats?

[Elsie]

Bu, but...

...how will the things we taxpayers want from the gummint be paid for??

[Vigilanteman]

There is a republican candidate for governor pointing out the obvious:

1. Pennsylvania's location (our county just southeast of Pittsburgh is one day truck driving distance from 70% of the nation's population.
   
2. Our two major cities are blessed with an abundance of high tech resources to provide and attract talent (except for the fact that local politics in both is controlled by the ultraleft).
   
3. Our natural resources are abundant.

   Yet, we are losing population and shedding jobs to places with more sensible taxation policies.

   I suspect that is part of the election year motivation.

[kvanbrunt2]

Well, if a corporation makes stuff and sell it they don’t pay taxes. The people that buy the stuff they make pay for all the costs of manufacture. Corp profits should be distributed as the corp sees fit to the productive side of society. taxes merely take from the productive side and give to the unproductive side. fees should be established for maintaining constitutionally granted powers that’s it. anything else is theft.

[redgolum]

Where will the burden be shifted to?

Or will it be budget cuts?

Seen to many “Tax cuts” turn into “Tax hikes for you!” (Looking at Trump).