Legislation recently introduced in the state House of Representatives would provide additional tax relief for families.
House Bill 2300 would amend the Tax Reform Code of 1971 to provide additional special tax provisions for poverty and adjust the corporate net income tax.
Special poverty provision tax exemption thresholds would be adjusted for inflation. There has not been an adjustment in nearly two decades.
Gov. Tom Wolf’s 2021-22 budget proposal, announced in February 2021, proposed raising the Personal Income Tax by 46 percent.
The bill also would reduce the Corporate Net Income Tax by 0.25 percent annually over the next two years. It would reach 9.49 percent for taxable years beginning Jan. 1, 2024.
“Coupling tax relief for low-income Pennsylvanians with the removal of a major barrier to business attraction and investment should be a key, bipartisan ingredient to our economic recovery,” said state Rep. Natalie Mihalek (R-Allegheny and Washington counties), who introduced the bill.
The state’s Corporate Net Income Tax is among the highest in the nation. Reducing it will eliminate one of the largest barriers to attracting businesses considering to establish a presence in Pennsylvania, Mihalek said.
The bill is currently under consideration by the House Finance Committee.