The CompetePA Coalition, which includes the PA Chamber of Business and Industry, participated in days of action at the PA State Capitol last week to advocate for a reduction to Pennsylvania’s burdensome Corporate Net Income Tax. Over three days, coalition members met with numerous PA House and Senate members to advocate for the CNI reduction to better position Pennsylvania more competitively.
Few issues draw as much attention as a state’s tax climate for companies seeking to locate or expand operations. At 9.99 percent, Pennsylvania has the unfortunate distinction of having the country’s second-highest CNI tax which serves as a major red flag to potential investors. It puts the Commonwealth at a disadvantage as businesses look to more pro-growth states to open or expand operations.
Furthermore, the Tax Foundation ranked Pennsylvania 44th out of 50 states in an analysis of overall corporate tax burden. Pennsylvania has lost billions in economic opportunities as businesses have chosen to invest elsewhere, where states are more business-friendly.
This year, there appears to be increased bipartisan support for passage of a CNI reduction as many Republican and Democratic lawmakers, and Governor Tom Wolf support it.
The CompetePA coalition has over 160 members throughout the Commonwealth, including statewide and regional business groups, small businesses and Fortune 500 companies that together represent more than half of the private sector employment in the Commonwealth.